Credit Suisse's bonus delay offers further escape opportunities
Credit Suisse was supposed to announce its bonuses today. While we understand that the vast majority of its employees are indeed being informed of their awards, some senior managers are being told there will be a short delay in their bonus communication.
Bloomberg reports that the delay applies to Credit Suisse managing directors and directors who are - coincidentally- also the people whose compensation is likely to be above $250k and whose cash bonuses are therefore likely to be subject to clawback, plus income tax, if recipients leave within three years.
It's not clear why these bonuses are delayed or when they're delayed until. However, as we reported yesterday, there are signs that people at CS are choosing to leave rather than receiving bonuses that are liable to be clawed back. - Last year, some Credit Suisse bonus recipients who resigned after being informed of their bonuses but before actually receiving them in their bank accounts, were compelled to repay income tax on the bonuses when they resigned.
While Credit Suisse delays, there are signs that more people are choosing to quit. We understand, for example, that Zack Attalah, the head of Northern Europe investment grade credit sales, has now gone. So too has Elsa Laurent, a Paris-based credit sales director. Yesterday, , a Credit Suisse director who'd been with the bank in NYC for 24 years messaged his clients to say it was his last day. Matt Clark, a former CS director in leveraged credit sales has just joined BNP Paribas in London, although he may have resigned last year.
In the meantime, some Credit Suisse markets MDs do seem to have been informed of their bonuses. One headhunter tells us he's spoken to a few and that they appear to have received the same amount: zero. Juniors are expected to be comparatively protected, however.
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