C Suisse boss expects fight with investment bankers over pay

The Battle for Middle Earth II screen

'The battle ground is remuneration'.

Credit Suisse’s CEO Tidjane Thiam said investment bankers are ready for a fight when it comes to compensation cuts.

'The battle ground is remuneration', Thiam said at a conference in Paris on Tuesday. 'The business is structurally quite profitable provided the pay can go up and down. It’s the ‘and down’ that they don’t accept;, he said, referring to bankers in the securities unit.

Bloomberg News reports that Thiam is shrinking the investment bank and increasing the lender’s focus on wealth management as regulators step up scrutiny of riskier activities and demand higher capital buffers. The securities operations that emerged from Thiam’s strategic overhaul in October posted the lowest return on capital among the bank’s units in the first nine months of last year.

'A business model where you have a cyclical revenue stream and fixed salary base does not work', Thiam told the audience'.

To access the complete Bloomberg News article hit the link below:

Pay Is a Battle Ground as Bankers Don't Accept Cuts, Thiam Says

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