Credit Suisse bankers in limbo as bonus conversations delayed

Bloomberg

Credit Suisse Group AG is delaying a much-anticipated compensation day for some of its bankers, further straining its relationship with employees as it restructures its Wall Street operations, according to people familiar with the matter.
The bankers — mainly at managing director or director level — were notified that meetings set for February 7 have been cancelled, pushing back conversations on bonuses, said the people, who requested anonymity discussing confidential information. The discussions may be rescheduled in the coming weeks, the people said. The bonuses are typically paid at the end of the month.
A spokeswoman for Credit Suisse declined to comment.
Staff inside Credit Suisse’s investment-banking arm have contended with uncertainty amid the Zurich-based lender’s plans to merge those operations with rainmaker Michael Klein’s advisory boutique. The combination is supposed to form a First Boston unit that will eventually be spun out. Credit Suisse said in October it received a commitment for a $500 million injection into the business, but hasn’t identified that investor.
The Swiss lender is already cutting its overall bonus pool for 2022 by as much as 50% after a year in which it was forced to raise capital. At the same time the bank’s leadership is offering some senior staff upfront cash payments to incentivize them to stay.
Credit Suisse, seeking to draw a line under years of losses and scandals, has said it would carve out its dealmaking businesses under the storied First Boston brand and tapped Klein to try to return them to their former glory. Credit Suisse First Boston is set to be a partnership, giving senior employees some ownership.
Any delays in bonus payments would be painful ahead of tax season, where bankers often use portions of the reward to cover those bills. It could also adversely impact the younger directors, who are likely to have more onerous mortgage burdens than their more tenured peers.
Credit Suisse’s Asia
Investment Banking
Vice Chairman Exits
Credit Suisse Group AG’s Zeth Hung has left the bank, the most senior departure for Asia-Pacific investment banking, as the Swiss lender continues to reshuffle its operations, according to an internal
announcement.
Hung, who spent 25 years at Credit Suisse, was most recently vice-chairman of investment banking & capital markets for the region. He stepped aside from its role as regional co-head for the division last year, while Edwin Low, the other co-head, was made chief executive officer for Asia-Pacific. A spokeswoman at the bank confirmed Hung’s exit. Hung couldn’t be reached for a comment.
The embattled bank has seen departures of top bankers in the past few months, including Carsten Stoehr, its CEO of Greater China, marking the most senior exit for its China business.
Hung was a key relationship banker of Luckin Coffee Inc., which in 2020 become embroiled in a scandal over fabricated revenue. Credit Suisse was also among the biggest lenders to the founder of the Chinese coffee chain.
Low replaced Helman Sitohang as Asia CEO last year as part of broader management changes across its global operations following major setbacks.