Credit Suisse Cuts Top Executives’ Variable Compensations by 40%

Credit Suisse CEO Tidjane Thiam and the bank’s board of directors have offered to cut their own bonuses by 40% ahead of its annual meeting.

The group also proposed to keep total board pay at the same level as 2015 and 2016.

The move follows pressure from Swiss lawmakers and Credit Suisse’ shareholders to address excessive executive pay.

Credit Suisse has posted two straight years of losses but its top 12 executives were awarded 78 million Swiss francs ($77 million) in pay this year.

Tidjane Thiam, who used to head insurance giant Prudential, was awarded 12 million Swiss francs in total pay in 2016.

Credit Suisse’s chief executive said the decision to reduce top executives’ variable compensation reflects “the total confidence” they have in fixing the Swiss bank’s fortunes.

In a letter to shareholders, he wrote: “My highest priority is to see through the turnaround of Credit Suisse which is under way.

“I hope that this decision will alleviate some of the concerns expressed by some shareholders and will allow the executive team to continue to focus on the task at hand.”

Credit Suisse investors are set to meet on April 28. Under Swiss law they get a binding annual vote on executive pay.