Changing the structure of compensation.
Credit Suisse has changed the structure of compensation for some of its senior London bankers, increasing fixed pay while eliminating the so-called allowances that have come under regulatory scrutiny, people familiar with the plan said.
Bloomberg News reports that affected employees were informed of the move last quarter, the people said, asking not to be identified as the details are private. Total pay hasn’t been decided for this year, and the bank will continue to use role-based allowances where needed for other staff, the people said.
European regulators drew a clear line between salaries and variable pay in final rules released in December, pledging to closely examine cash allowances to avoid circumvention of a rule that caps bonuses at twice fixed pay. Dozens of the region’s lenders have counted allowances as fixed pay in recent years, while the European Banking Authority said in most cases they should be classified as variable.
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