In an unprecedented move, Credit Suisse increased the pay of its CEO by over thirty percent back in 2012. This would most likely cause public backlash after the firm's profits have declined and its share values remaining stale for quite some time.
According to latest filings, CEO Brady Dougan received 7.8 million Swiss Francs or US$8.2 million in 2012 even after leading a program to reduce exposure in risk assets, improve capitalizations and cut costs. Recent pay disclosures have caused many Swiss voters to support the implementation of the strictest controls on executive payroll, even requiring companies to provide its shareholders a vote over compensation packages.
Other European officials who have also won support to place a ceiling on bank executive bonuses, would also be following the executive payroll control tact employed in many firms.
The bank's pay committee justified the pay increase as a reward in restructuring the business. As of writing, Credit Suisse's net profit declined by 24% to just 1.48 billion Swiss Francs last year and stock dividend remained unchanged.
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