Credit Suisse has handed out a pay rise to Chief Executive Brady Dougan
in the wake of a heated debate over banking bonuses.
The Swiss bank increased Dougan's pay for 2012 by a third to 7.8m Swiss Francs despite posting a fall in annual net profit.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The lender also increased its bonus pool by almost 15% to 3.4bn Swiss Francs for its overall staff.
It comes as financial institutions are being put under the microscope amid a banking crisis across Europe.
Switzerland has put a limit on executive pay and the European Union is planning a bonus cap for senior bankers.
However, it has not stopped banks from increasing its bonuses to executives, enabling UBS to pay its Chief Executive Sergio Ermotti a bonus of 8.9 Swiss Francs.
Dougan received a pay upgrade after calling 2012 "a year in transition" in the wake of 2,300 job losses and cutbacks in the investment bank.
Net profit fell by more than a quarter to 1.35bn Swiss Francs last year.
The bank has introduced a cap on executives bonuses, limiting the overall short-term and long-term bonuses for the boss to a maximum of 4.5 times his salary.
Dougan received a salary of 2.5m Swiss Frances last year, so his maximum pay could have been SFr13.75m.
RD
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
