Credit Suisse set to pay bonuses and boost salaries despite UBS takeover
Credit Suisse is reportedly set to pay out bonuses and go ahead with planned salary increases for its staff despite the dramatic acquisition of the bank by UBS over the weekend.
In an internal email sent to members of staff and seen by the Financial Times, the beleaguered lender said it “will continue to allocate for a 2023 performance bonus for those eligible.”
“We are committed to treat all employees fairly, any bonus plan will be based on both business and individual performance,” it added.
Credit Suisse also said it will go ahead with salary increases scheduled for April.
Credit Suisse declined to comment on the report, but City PM understands many members of staff have already been paid their bonuses.
Credit Suisse was bought by UBS last night in a discount $3bn deal that saw the stricken lender rescued from bankruptcy. Regulators hope the deal will help avoid “irreparable” damage to the global financial system.
The deal is set to be completed by the end of the year.
Markets have been skittish since the collapse of Silicon Valley Bank earlier this month, and that nervousness has travelled across the Atlantic as investors have sought to sniff out the next bank that could fall.
Credit Suisse suffered a dramatic share price collapse last week after its largest shareholder, the Saudi National Bank, said it would not inject any further capital into the bank.
In recent years Credit Suisse has fallen from one crisis to another, facing scandals, talent outflows and a mammoth CHF7.3bn loss.