Credit Suisse to pay bonuses to some bankers in instalments and dial back Asia risk controls after revolt
- Some associates and vice presidents were told on Tuesday that the much-anticipated rewards will be doled out in chunks, according to sources
- The bank is also fighting to stem investor outflows and staff departures by dialling back anti-money-laundering controls in Asia
Some of Credit Suisse Group’s junior and mid-level bankers will get their bonuses paid out in instalments, a latest twist in the firm’s handling of employee compensation amid a tumultuous overhaul. It will also dial back risk controls in Asia after bankers revolt.
Some associates and vice presidents were told on Tuesday that the much-anticipated rewards will be doled out in chunks, according to people familiar with the matter. Each of the three instalments will be paid about 40 days after April 1, July 1 and October 1, the people said, asking not to be identified discussing private information.
The bank is seeking to cling on to talent while contending with a restructuring of its Wall Street operations after a period of scandals and losses sparked a tide of departures. Credit Suisse abruptly delayed compensation day for some of its investment bankers at managing director or director level, pushing back conversations on bonuses that were meant to take place on Tuesday.
A representative for Credit Suisse declined to comment.
The Zurich-based lender plans to merge its investment-banking arm with rainmaker Michael Klein’s advisory boutique to become a First Boston unit that will eventually be spun out. Apollo Global Management is among financial firms showing an early interest in taking a stake in the unit, a separate person familiar with the matter said.