[Global] Credit Suisse will pay bonuses and bump salaries despite UBS takeover

Credit Suisse will pay employee bonuses and proceed with planned salary increases for despite the dramatic acquisition of the bank by UBS last weekend, City A.M. reports.

In an internal email to members of staff - seen by the Financial Times - the troubled lender said it “will continue to allocate for a 2023 performance bonus for those eligible.”

“We are committed to treat all employees fairly, any bonus plan will be based on both business and individual performance,” the email read.

In addition, Credit Suisse said it will go ahead with salary increases scheduled for April.

Credit Suisse declined to comment on the report, however, according to City A.M. reporting, many members of staff have already received their bonuses.

Credit Suisse was bought by UBS on March 19, in a discount $3bn deal that saved the lender from bankruptcy. Regulators reportedly hope that the deal will help prevent “irreparable” damage to the global financial system.

The deal is set to be completed by the end of the year.

Markets have been jumpy since the Silicon Valley Bank collapse earlier this month and that sense of anxiety has made it across the Atlantic as investors try to predict the the next bank to potentially fall.

The dramatic share price collapse of Credit Suisse came after its largest shareholder - the Saudi National Bank - said it would not inject any further capital into the bank.

Credit Suisse has floundered from one crisis to another, in recent years, with scandals, talent outflows and a mammoth CHF7.3bn loss. 

Source: City A.M.

(Links and quotes via original reporting)

Credit Suisse will pay employee bonuses and proceed with planned salary increases for despite the dramatic acquisition of the bank by UBS last weekend, City A.M. reports.

In an internal email to members of staff - seen by the Financial Times - the troubled lender said it “will continue to allocate for a 2023 performance bonus for those eligible.”

“We are committed to treat all employees fairly, any bonus plan will be based on both business and individual performance,” the email read.

In addition, Credit Suisse said it will go ahead with salary increases scheduled for April.

Credit Suisse declined to comment on the report, however, according to City A.M. reporting, many members of staff have already received their bonuses.

Credit Suisse was bought by UBS on March 19, in a discount $3bn deal that saved the lender from bankruptcy. Regulators reportedly hope that the deal will help prevent “irreparable” damage to the global financial system.

The deal is set to be completed by the end of the year.

Markets have been jumpy since the Silicon Valley Bank collapse earlier this month and that sense of anxiety has made it across the Atlantic as investors try to predict the the next bank to potentially fall.

The dramatic share price collapse of Credit Suisse came after its largest shareholder - the Saudi National Bank - said it would not inject any further capital into the bank.

Credit Suisse has floundered from one crisis to another, in recent years, with scandals, talent outflows and a mammoth CHF7.3bn loss. 

Source: City A.M.

(Links and quotes via original reporting)