Credit Suisse has reportedly informed employees that deferred bonuses linked to the bank’s AT1 bonds will be completely written down.
The aftermath of the $17 billion AT1 debt wipeout continues to be felt, this time by Credit Suisse employees whose bonuses linked to the bonds will be written down to zero, according to a «Bloomberg» report citing unnamed sources.
Employees of the bank have been informed of the decision to erase so-called contingent capital awards (CCA) that totaled 360 million Swiss francs ($403 million) at the end of 2022. Credit Suisse previously held discussions with regulator Finma about potentially excluding CCAs from the AT1 write-down, the report added.
Bonus Cuts
Thousands of managing director and director-leveled staff at Credit Suisse have received CCAs at least as part of their bonuses in recent years, including 5,000 employees in 2021 alone.
In addition to the CCA write-down, Credit Suisse employee awards have also been hit by a Swiss government decision earlier this month to halve or completely cancel outstanding bonuses for executive board members and top managers one or two levels below.
