Credit Suisse has failed to completely quash a shareholder revolt over payouts to the bank's senior managers, even after offering to cut bonuses for top management by 40 percent and a pay freeze for its board of directors.
The Swiss bank made the concessions last week to head off shareholder criticism of its pay plans, which included bonuses of 78 million Swiss francs ($77.7 million) to top executives and higher pay for the board despite a 2.7 billion franc net loss last year.
Shareholder advisory service Glass Lewis said the concessions were "too little too late." It urged shareholders to reject the maximum amount of compensation for the board of directors, but advised them to support the proposed bonuses for Credit Suisse's executive board.
Shareholders in Switzerland have veto power over management and board pay following a 2013 "fat cat" referendum on the issue. If Credit Suisse shareholders reject the plan, it would be the first use of the Swiss veto at a leading company.
Shareholders will vote at the bank's annual general meeting on April 28.
Investors have become much more vocal in opposing big increases in executive pay and bonuses when a company has not performed strongly.
American International Group Inc's CEO Peter Hancock will not get a cash bonus for last year after the company's poor performance roiled shareholders. BP cut CEO Bob Dudley's 2016 pay package by 40 percent after shareholders opposed the oil company's pay plans.
Another shareholder advisory group Institutional Shareholder Services advised Credit Suisse shareholders to vote against proposed compensation for the executive board and board of directors because Credit Suisse had not yet formally changed the agenda for its shareholder meeting to reflect the concessions, according to a report, dated April 15, sent to Reuters on Tuesday.
Credit Suisse has now published those amendments to its Annual General Meeting agenda. An ISS spokeswoman said in response that it would issue a further notice to clients later on Tuesday.
If shareholders vote against the compensation, Credit Suisse's board of directors may submit a new proposal to an extraordinary general meeting or to the next AGM, according to Credit Suisse's articles of association.
Overall, CEO Thiam's compensation will drop by 4.67 million francs through the bonus cut, although his 2016 compensation will fall only to 10.24 million francs from 11.9 million because the bulk of the reduction comes from 2017 long-term payments.
The pay packet still makes Thiam one of Europe's highest-paid bank bosses.
Credit Suisse's board will get compensation of 12 million francs, from 12.5 million previously, under the proposals.
Since taking over as CEO in mid-2015, Thiam has shifted the bank's focus towards wealth management while shrinking Credit Suisse's investment bank.