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Bloomberg
Credit Suisse Group AG shareholders should reject the bank’s compensation plan over proposed payments to former executives in the wake of a corporate spying scandal, a top shareholder adviser said.
Investors should be concerned about lack of disclosure of overall compensation for former Chief Operating Officer Pierre-Olivier Bouee, who was blamed for the spying and fired in December, Glass Lewis said in a report seen by Bloomberg. It also questioned the board’s decision to allocate full “good leaver†remuneration to former Chief Executive Officer Tidjane Thiam, even though he was also pushed out.
“We have some lingering concerns about board’s reliability in maintaining a transparent, consistent approach to compensation in delicate circumstances like the ones the company has recently faced,†Glass Lewis said.The bank ousted Thiam in February in an attempt to repair its reputation, turning to 20-year Credit Suisse veteran Thomas Gottstein.
An internal probe concluded that Thiam didn’t know about the spying, which targeted former wealth management executive Iqbal Khan, and that Bouee was responsible. It later came out that human resources chief Peter Goerke was also followed, which the bank also blamed on Bouee.