Credit Suisse changes bankers remuneration policy

By Simon Hayes on October 21, 2009 10:36 AM |

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Credit Suisse is to up the basic salaries of around 15 per cent of its staff to make up for limits on bonuses.

Around 7,000 workers at the bank, which has its British headquarters in Cabot Square, will see the change to their compensation packages come into effect from January.

Instead of a lump sum bonus based on short-term results the staff affected, mainly its top earners, will see bonuses deferred and linked to performance and share price over a longer time period.

The move comes as the Government seeks to avoid a repeat of the short-term profit practices which precipitated the credit crunch and subsequent recession.

It is not the first Wharf-based bank to change its remuneration practices. Citigroup announced in July they would be increasing basic salaries for staff and reducing bonuses, while Morgan Stanley has a "pay for performance" policy in place along similar lines.