Credit Suisse will cut its bonus pool by 40 percent and is combining two units in a bid to cut costs, the newspaper Der Sonntag reported, in the wake of poor investment banking performance and an increased regulatory burden.
Compared with a 2010 bonus pool of 5.05 billion Swiss francs, Credit Suisse will now only allot 3 billion ($3.21 billion) for extraordinary remuneration, the paper reported on Sunday.
Banker bonuses have been a particular focus of controversy in Switzerland since 2008, when UBS was bailed out by the government. Credit Suisse has been at pains to address the bonus issue after Chief Executive Brady Dougan was roundly criticised for a 2009 windfall of 70 million francs in stock, which he received under a 2004 bonus plan.