“Credit Suisse Group AG (CSGN) Chief Executive Officer Brady W. Dougan said pay for bankers is still outpacing shareholder returns, a dynamic that will change once the bank completes an overhaul of its business model.
““In the past few years, certainly, the shareholders have taken a bigger reduction in their returns than labor has within the business model,” Dougan, 53, said in an interview with Bloomberg Television’s Erik Schatzker to be broadcast today. “That’s not sustainable. That’s not right.”
“Credit Suisse, which has dropped 72 percent since Dougan took over in May 2007, has sought ways to realign shareholders and bankers’ interests. In 2008, the company paid a portion of senior employees’ bonuses in bonds linked to a pool of toxic assets, helping the firm to dispose of risky holdings and free up capital. The bonds returned 75 percent between the end of 2008 and November 2011, people with knowledge of the results have said. The firm revived the practice for 2011 pay.”
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