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.
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
-
The common ways you could have invalidated your travel insurance – and how to avoid themIt can be easy to accidentally breach the terms of your travel insurance. We look at the most common ways this can happen, and how you can avoid them.
-
Vietnam Enterprise Investments Limited: Investing in the ascending dragonVietnam’s growth trajectory began in the 1980s and today the country is a manufacturing powerhouse, but the dragon still has further to soar. Vietnam Enterprise Investments Limited offers diversified exposure.
