Credit Suisse ties part of bonuses to capital levels

|About: Credit Suisse Group AG (CS)|By:, SA News Editor

About 20% of deferred 2013 pay for directors and managing directors will be in the form of contingent-capital securities which would lose value if the bank's common equity ratio falls below 7%, reports Bloomberg, citing a staff memo.

With the move, Credit Suisse (CS -2.4%) joins Swiss rival UBS which is doing the same. “We believe our compensation structure will satisfy our key stakeholders while also allowing us to compensate our employees fairly and competitively in today’s environment,” says the memo.

Staff will also receive stock - some of which is subject to clawback - as part of their pay.