Aligning the interests of employees and shareholders.
About 20% of 2013 deferred pay for Directors and Managing Directors will be granted in the form of debt known as contingent-capital securities, which lose value if the firm’s common equity ratio falls below 7%, according to a January 21 staff memo obtained by Bloomberg News.
Credit Suisse is joining UBS in paying staff partly in contingent capital, which the two firms have to raise by 2019 to satisfy regulatory requirements. The awards seek to align the interests of employees and shareholders and give incentives to limit risk.
Credit Suisse staff will also receive shares, some of which can be clawed back, as part of their deferred compensation.
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