Credit Suisse slashes executive bonuses after scandals at Archegos and Greensill

Credit score Suisse has chopped bonuses for it senior executives by 64 per cent after a yr throughout which the financial institution suffered heavy losses from the collapse of household workplace Archegos Capital and specialist finance firm Greensill.

Chief government Thomas Gottstein’s general pay decreased by 43 per cent to SFr3.8mn ($4mn), whereas his variable pay dropped 77 per cent. The best paid government at Credit score Suisse final yr was chief monetary officer David Mathers, who acquired SFr4.1mn in complete pay.

“2021 has been an unprecedented and uniquely difficult yr for Credit score Suisse,” mentioned Kai Nargolwala, chair of the board’s remuneration committee.

Credit score Suisse additionally grew to become the newest financial institution to stipulate its Russian danger on Thursday, because it detailed a gross credit score publicity of SFr1.6bn on the finish of 2021.

The lender mentioned this included derivatives and financing exposures in its funding financial institution, commerce finance exposures in its home Swiss financial institution and loans in its wealth enterprise.

It added that after taking into consideration hedges, ensures, insurance coverage and collateral, its web danger publicity was SFr848mn.

As well as, Credit score Suisse mentioned its Russian subsidiaries — which make use of 125 employees — held SFr195mn of property.

With out offering particulars, the financial institution mentioned it had “minimal complete credit score exposures in direction of particularly sanctioned people” in its wealth administration enterprise, which traditionally has been a favoured lender for wealthy Russians.

“In purely monetary phrases, we’ve reviewed our positions and imagine that the financial institution’s publicity in relation to Russia is well-managed, with acceptable techniques in place to deal with related dangers,” mentioned Gottstein.

“The present surroundings means making tough choices and managing by means of difficult conditions, however at all times with a transparent sense of perspective and the will to do the best factor.”

On Monday, rival Swiss financial institution UBS mentioned it had round $200mn of publicity to Russian property used as collateral in Lombard lending, that are loans secured in opposition to a portfolio of liquid property comparable to equities and bonds, and different secured financing.

UBS additionally revealed it had $10mn of loans excellent to shoppers hit by western sanctions imposed in response to Russia’s invasion of Ukraine. The world’s largest wealth supervisor mentioned that its direct danger publicity to Russia was $634mn on the finish of 2021, out of its complete rising market publicity of $20.9bn.

By comparability, Austria’s Raiffeisen reported a direct publicity to Russia of €22.9bn, whereas France’s Société Générale and Crédit Agricole reported €18.6bn and €4.9bn of publicity, respectively, and ING of the Netherlands reported €6.7bn.

On Wednesday, UniCredit warned that it confronted losses of about €7bn in an “excessive situation” whereby its complete Russian enterprise was worn out.