The Group is committed to fair, balanced and performance-based compensation practices that align long-term employee and shareholder interests.
The objectives of the Group’s compensation policy include attracting and retaining employees, and motivating them to achieve results with integrity and fairness. The compensation policy is designed to support a performance culture which fosters teamwork and collaboration. Furthermore, it aims to promote effective risk management practices consistent with the Group’s compliance and control framework. The compensation policy takes into account the capital position and long-term performance of the Group and balances the fixed and variable incentive compensation components to reflect the value and responsibility of the roles that employees perform. The objectives of the compensation policy are framed to achieve an appropriate balance between the interests of employees and shareholders in order to create sustainable value for the Group.
Message from Compensation Committee Chairman
- Letter to Shareholders from the Chairman of the Compensation Committee, April 18, 2017 (PDF)
- Message from Compensation Committee Chairman, March 24, 2017 (PDF)
Compensation to the Executive Board
Compensation payable to the Executive Board members, including the CEO, is proposed by the Board upon recommendation by the Compensation Committee and subject to shareholder approval at the AGM.
For a full description of the compensation for Members of the Executive Board for 2016 and the compensation structure for Members of the Executive Board for 2016, refer to the Annual Report 2016 - Compensation.
Compensation to the Board of Directors
Compensation payable to members of the Board, including the Chairman, is proposed by the Board upon recommendation by the Compensation Committee and subject to shareholder approval at the AGM.
|Base board fee||Committee
|Chair fees||Subsidiary board fees||Total
|Awarded in cash||% of total compen-sation||Awarded in Group shares 2||% of total compen-sation|
|Urs Rohner, Chairman 3||3,000,000||-||750,000||-||3,980,929||3,230,929||81%||750,000||19%|
|Jassim Bin Hamad J.J. Al Thani 4||250,000||-||-||-||250,000||125,000||50%||125,000||50%|
|Iris Bohnet 4||250,000||100,000||-||-||350,000||175,000||50%||175,000||50%|
|Noreen Doyle 4,5||250,000||200,000||-||252,000||702,000||477,000||68%||225,000||32%|
|Andreas N. Koopmann 4||250,000||200,000||-||-||450,000||225,000||50%||225,000||50%|
|Jean Lanier, Chairman
of the Compensation Committee 4,6
|Seraina (Maag) Macia 4||250,000||150,000||-||-||400,000||200,000||50%||200,000||50%|
|Kai S. Nargolwala 4||250,000||200,000||-||-||450,000||225,000||50%||225,000||50%|
|Joaquin J. Ribeiro||250,000||150,000||-||-||400,000||200,000||50%||200,000||50%|
|Severin Schwan 4||250,000||100,000||-||-||350,000||175,000||50%||175,000||50%|
|Richard E. Thornburgh,
Chairman of the Risk Committee 4,8
|John Tiner, Chairman
of the Audit Committee 4,8
1 At the 2016 AGM, shareholders approved a maximum amount of total compensation to be awarded to Board members until the 2017 AGM of CHF 12 million. For the total compensation awarded to members of the Board, the Group will make payments of CHF 0.5 million for the 2016/2017 Board period to cover the mandatory employer social security contributions as required under the social security laws applicable to the individual Board members based on their domicile and employment status. These contributions do not form part of the Board members’ compensation.
2 As per December 31, 2016, one-half of the Board member fees to be awarded in Group shares have been delivered to Board members. The applicable Group share price was CHF 14.39. The remaining shares will be delivered to Board members at or around the date of the 2017 AGM and the share price for this second share delivery will be determined at that time. Group shares are subject to a four-year blocking period.
3 The chair fee of the Chairman is set at CHF 1.5 million to be awarded as 100% Group shares. For the period from the 2016 AGM to the 2017 AGM, the Chairman proposed to voluntarily waive 50% or CHF 0.75 million of his Chair fee and this proposal was approved by the Board. The total compensation of the Chairman includes benefits for the period from the 2016 to the 2017 AGM of CHF 230,929, including pension and health insurance benefits and lump sum expenses.
4 All members of the Board are awarded an annual base board fee and a committee fee for their respective committee membership for the period from one AGM to the next, i.e., from April 29, 2016 to April 28, 2017. Except for the Chairman, who receives his base board fee in 12 monthly installments throughout this period, Board member fees are paid in two installments of cash and Group shares, which are made approximately six and twelve months after the AGM respectively. As of the date of the 2017 AGM, these total combined fees will have been paid in cash (60%) and Group shares (40%).
5 In addition to the base board and committee fees, which were awarded as 50% cash and 50% Group shares, a subsidiary board fee of GBP 200,000 (CHF 252,000) was awarded in cash to Noreen Doyle as a non-executive director and chair of two of the Group’s UK subsidiaries, Credit Suisse International and Credit Suisse Securities (Europe) Limited.
6 In addition to his base board and committee fees, Jean Lanier is awarded a chair fee of CHF 200,000 as Compensation Committee Chairman; the chair fee is awarded as 50% cash and 50% Group shares.
7 In addition to his base board and committee fees, Richard E. Thornburgh was awarded a chair fee of CHF 420,000 as Risk Committee Chairman; the chair fee was awarded as 50% cash and 50% Group shares. Furthermore, Richard E. Thornburgh was awarded a subsidiary board fee of USD 280,000 (CHF 274,510) in cash as a non-executive director and chair of Credit Suisse Holdings (USA), Inc., a US subsidiary.
8 In addition to his base board and committee fees, John Tiner was awarded a chair fee of CHF 560,000 as Audit Committee Chairman; the chair fee was awarded as 50% cash and 50% Group shares. Furthermore, John Tiner was awarded a subsidiary board fee of USD 140,000 (CHF 137,255) in cash as a non-executive director and audit and risk committee member of Credit Suisse Holdings (USA), Inc., a US subsidiary.
For a full description of the compensation for Members of the Board of Directors for 2016, refer to the Annual Report 2016 - Compensation.