Former Credit Suisse head Oswald Gruebel defended the hefty bonus payout to its top managers in an interview with Swiss newspaper Sonntag, saying they are now being rewarded for making the bank what it is. Credit Suisse awarded Chief Executive Brady Dougan shares worth around 71 million Swiss francs under a five-year bonus plan last week, stoking debate on executive pay in Switzerland.
"In 2004 and 2005, those responsible did not get much cash and through the bonus programme they got long-term success incentives - exactly what is being asked for today. Now it is paying off for those people who have made Credit Suisse what it is today."
Credit Suisse made it through the financial crisis without state aid despite a hefty loss in 2008 and returned to a handsome profit in 2009, unlike UBS, which had to be bailed out by the government and still lost money last year.
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