Credit Suisse Group AG will pay its top 12 executives about CHF115 million in 2018 under a revised incentive plan, up 5.5% compared to the aborted scheme in 2017, the Financial Times reported.
Kai Nargolwala, the new chairman of Credit Suisse's compensation committee, said in a letter to shareholders that the Swiss bank's financial performance was the "primary basis" of the new plan, according to the March 23 report.
Credit Suisse posted a full-year 2017 net loss of CHF983 million, down from an attributable net loss of CHF2.71 billion in 2016, although the 2017 loss was attributable to changes in U.S. tax law, without which profit would have been more than CHF1.7 billion, the FT noted. The bank's shares recently dropped by as much as 3.3% after its global markets division saw a decline in revenues since mid-February.
The 2018 incentive plan includes long-term awards carrying a "maximum opportunity" for CHF58.5 million, to be paid out over the next five years, based on performance from 2018 to 2020. The long-term awards are up 12.5% from those proposed for 2017, the FT said.
Under the new plan, executives' short-term incentives will be determined by performance against Credit Suisse's group-wide adjusted profits and cost targets, rather than the various divisional metrics they were previously judged against, the report added.