Credit Suisse bosses agree to slash own bonuses by 40% after shareholder fury

Mr Thiam had reportedly been set to receive almost SFr12m in pay and bonuses, which would have made him one of Europe's highest-paid bankers

In a letter to shareholders on Friday, Mr Thiam wrote: 'My highest priority is to see through the turnaround of Credit Suisse which is under way' (Reuters)

Senior Credit Suisse managers, including boss Tidjane Thiam, have offered to have their bonuses slashed by 40 per cent, in the face of growing opposition from advisory groups and shareholders.

According to a statement published on the bank’s website, members of the executive board including Mr Thiam, have offered to have their long-term incentive awards for 2017 and short-term incentive awards for 2016 reduced.

Total board compensation will remain at the level of 2015 and 2016. There will be “no incremental increase in 2017 as proposed to the AGM,” the bank said.

Credit Suisse has come under fire in recent weeks for its plans to make a SFr78m (£62m) payout in compensation, despite posting heavy losses in the last two years.

Investor advisers Institutional Shareholder Services (ISS), Ethos and Glass Lewis had all told shareholders to oppose part or all of the payments, according to Reuters.

ISS advises more than 1,700 of the world's top investors and it is considered highly influential.

Reuters said that Mr Thiam had been set to receive almost SFr12m in pay and bonuses, which would have made him one of Europe's highest-paid bankers.

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

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

He said the decision to reduce top executives’ variable compensation reflects “the total confidence” they have in the progress they bank is making.

“Although that progress is not yet reflected in our share price, I am confident that our strategy and our disciplined execution will in due course create value for you, our shareholders,” he added.

Credit Suisse did not specify the exact size of the new bonus package.

Last month a survey conducted by Equality Trust showed that FTSE 100 CEOs get paid 386 times the UK living wage.