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Credit Suisse Employees Will Receive 2010’s Cash Bonuses In 2014

Okay, that’s not entirely fair- employees will receive some of the cash they earned in 2010 this year, some in 2012, a little in 2013, and the remainder of the payout in 2014 (all of which is subject to a clawback clause). Sound like fun? It’s the Swiss bank’s take on tantra.

Credit Suisse said Monday it will alter how it pays banker bonuses for 2010, taking into account shareholder criticism and increasing government involvement in year-end rewards.The Zurich-based bank’s cash bonuses will be paid out over four years—one-quarter annually—and be linked to Credit Suisse’s return-on-equity from next year to 2014. The return on equity over the four years represents the maximum potential for the cash awards to rise, Credit Suisse said. Cash bonuses can be clawed back should employee actions later prove to harm the bank, its reputation or earnings, Credit Suisse said.

In bonuses paid out as bank stock, Credit Suisse is removing leverage from 2010’s plan, which investors had criticized in past years because bankers could win additional shares depending on the bank’s share price, without ceding any shares if the stock slumped.Credit Suisse is also lowering to 50,000 Swiss francs ($51,500) the threshold for bonuses to be deferred as opposed to paid out in cash, from 125,000 francs previously.

Credit Suisse Tweaks Bonus Plan [WSJ]

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27 Responses to “Credit Suisse Employees Will Receive 2010’s Cash Bonuses In 2014”

  1. Mr. Webster says:

    “Tantric Bonuses” should become a staple in Wall St. lexicon. Brilliant.

  2. Anonymous says:

    “Tantric Bonus” = sheer genius. Let’s make it “Word of the Year” for 2011

  3. tits says:

    ” All this time CS employees never realized they were having the best sex of their lives while on the Job ”

  4. Winny says:

    LOL…Tantric….indentured….servitude

  5. Vendeur de Petrol says:

    Does that mean I won’t get my bonus?

    -A Certain Trader for a Certain Bank Associated with Switzerland

  6. Ron Mexico says:

    On a related note, anyone who received herpes from me will not receive the positive test results back until 2012

  7. MD says:

    Kiddies,

    Search elsewhere to get rich before 30.

    The BB will essentially become like Big 6 firms (now 4); where you get paid like crap for 10yrs, are enslaved with pitch-trips to Des Moines, then hopefully you make Partner @35….ie, an EY Partner < $1M cash.

    BB will essentially become an outsourced industry like accounting; comps, pitch books, merger model aint rocket science. India does half the data pull already.

    The days of a VP walking out the door with $750K cash like i did in 1999 are over, forever.

    And the chances of being an MD millionaire after tax (risk adjusted: ie, bear mkt, layoffs, crap stock) are lower in BB than anywhere. And try getting a job at 35, after u executed for 10yrs for MDs, and have no clients…..thats like 75% of Directors/ExD.

    Most Bankers last 2-5 yrs at any BB job, so you will never collect; and any guarantee elsewhere will cliff-vest it out further or have leakage or switching costs.

    go to PE or HF….even crappy 2nd, 3rd tier ones; as the payout on 1 good year or carry on one 5-10 bagger, beats this crap x5.

    Ignore at your peril or check lifestyle of ex-Anderson partners living in LI doing taxes.

    • YouMakeGoldDiggerCry says:

      So, are you seeing anyone

    • Guest says:

      “kiddies”

      I’m 42 (and everyone I know who reads DB- at my firm and elsewhere) is over 30. and I already knew to go work at a hedge fund, where I’ve been for the last ten years. Thanks for putting on your “wise elder” hat though, that was fun.

    • Guest says:

      Do you see BB firms continuing to be the gateway to working at many PE and HF shops?

    • Guestosaurus says:

      unfortunately the days that everyone that came through the door at a PE shop got carry is gone – the big PE firms are the new ibanks, at best.

  8. Anonymous says:

    VP in 1999? you are old bro, GTFO

  9. CEO says:

    Be glad your getting anything..last I checked brain surgery isn’t being performed..wall street could layoff 50% and they would still be overstaffed..

  10. Bonus Praecox says:

    It’s 2015, not 2014.
    For work done in 2010, cash will be paid beginning of 2011, and deferred comp will be paid in 4 parts beginning of 2012, 2013, 2014, and 2015
    (if the first chunk were paid in now in 2011, it wouldn’t be deferred, would it.)
    Back to tantra practice, bonus praecox.