Swiss banking giant Credit Suisse said Monday it would toughen the rules and defer more payments of bonuses, in a move that comes on the heels of plans by regulators to clamp down on the rewards. The global financial crisis was in part blamed by some regulators on bonuses in the financial sector, which critics allege promotes a culture of short-term gains over longer-term stability.
Credit Suisse, the second largest bank in the country, said it was looking to ensure "the long-term success of the bank." More employees than before will be subject to restrictions in their variable awards, as the threshold to enter a deferred compensation programme has been lowered from 125,000 Swiss francs (129,400 dollars) to 50,000 francs.
Also, a lower portion of employees' awards will be in cash. The payment structure for 2010 furthermore includes a tighter mechanism for rewarding top-level employees. Credit Suisse said it could "cancel outstanding awards" if employees' activities result in "material harm" to the bank.
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