Amid mounting losses, this man is the highest-paid executive at Credit Suisse in 2022. It's not CEO! | Mint
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Business News/ Companies / News/  Amid mounting losses, this man is the highest-paid executive at Credit Suisse in 2022. It's not CEO!
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Amid mounting losses, this man is the highest-paid executive at Credit Suisse in 2022. It's not CEO!

In its annual report 2022, the Switzerland-based banking and financial services provider said that the highest-paid Executive Board member in 2022 was David Mathers, who stepped down from the role of Chief Financial Officer on September 30, 2022.

The logo of Swiss bank Credit Suisse is seen in front of a branch office in Bern, Switzerland November 29, 2022. (REUTERS)Premium
The logo of Swiss bank Credit Suisse is seen in front of a branch office in Bern, Switzerland November 29, 2022. (REUTERS)

Mounting losses due to significant outflow in the wealth division battered Credit Suisse on exchanges on Wednesday. Billions of Swiss francs have been wiped out. The Swiss lender has signalled a "material weakness" in its internal control for the financial reporting in 2022 and 2021. But amidst all of the drawbacks, there was one man on the executive board of Credit Suisse who received the highest compensation in 2022. And it was not CEO Ulrich Koerner.

In its annual report 2022, the Switzerland-based banking and financial services provider said that the highest-paid Executive Board member in 2022 was David Mathers, who stepped down from the role of Chief Financial Officer on September 30, 2022.

In 2022, Mathers received a total compensation of CHF 3.9 million, which comprised CHF 2.1 million base salary (including a one-off payment in lieu of annual leave entitlements and notice period payments), CHF 1.5 million role-based allowances, and CHF 0.3 million pension and benefits.

Credit Suisse stated that Mathers’ total realized compensation for 2022 was CHF 4.3 million and comprised CHF 2.1 million base salary (including a one-off payment in lieu of annual leave entitlements), CHF 1.5 million role-based allowances and CHF 0.5 million in realized variable compensation related to deferred awards from prior years. In addition, he received CHF 0.3 million in pension and other benefits.

On the other hand, CEO Koerner who assumed the role of Group CEO on August 1 last year, was awarded a total compensation of CHF 2.5 million in 2022.

Of the total compensation, Koerner was awarded CHF 1.1 million base salary and CHF 0.1 million pension and benefits relating to his role as

Group CEO, and CHF 1.2 million base salary and CHF 0.1 million pension and benefits relating to his role prior to having been appointed CEO.

Notably, in 2022, the total compensation stood at CHF 9,384 million --- down by 2% from the previous year. This included d CHF 497 million for the Strategic Delivery Plan (SDP) awards granted to most Managing Directors and Directors to incentivize the longer-term delivery of the Group’s strategy.

Further, in 2022, the lender awarded CHF 367 million in retention awards to key talent and senior management in the form of deferred cash (subject to clawback) and deferred share-based awards --- of which --- CHF 317 million was granted to employees in the Investment Bank division.

Credit Suisse's annual report said, the focus has been on critical roles where the risk of attrition was high and of immediate concern, and where the respective businesses would be significantly impacted.

About 1,143 employees received retention awards in 2022.

In value terms, the retention awards were lower in 2022 from CHF 395 million granted in 2021 --- of which -- CHF 299 million was awarded to key talent in the Investment Bank division. In number terms, the number of employees who received retention awards was to the tune of 652 in 2021.

In regards to the median and average employee compensation, in 2022, Credit Suisse said, the "median annualized total compensation (excluding pension and benefits and dividend equivalents) of all of our bonus eligible employees of our company (other than the CEO) was CHF 110,000, and the annual total compensation of our CEO was CHF 2.29 million (excluding pension and benefits and dividend equivalents)."

Taking this into consideration, in 2022, the ratio of the annual total compensation of Credit Suisse's CEO to the median annual total compensation of all employees was calculated to be 20.8 to 1. This is lower than the ratio of 31.1 to 1 for 2021 where the annual CEO total compensation stood at CHF 3.51 million. Also, the median annual total compensation of all employees is lower than CHF 113,000 in 2021.

The average total compensation in 2022 was calculated at approximately CHF 185,895 per employee (full-time equivalents), 2% lower compared with approximately CHF 189,542 per employee for the prior year.

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Published: 15 Mar 2023, 09:08 PM IST
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