Crisis hit Credit Suisse scraps bonus for executives as it moves to avert further economic trouble

THE scandal-hit Swiss bank, Credit Suisse, announced on Thursday, February 9 that it would cut bonuses for company executives as it records its worst financial year since the economic crisis of 2008.

Clients withdrew their money in droves and company shares plummeted causing the company to record a staggering net loss of nearly €7.4 billion. 2022 marks the second year that the company has reported a loss after losing nearly €1.8 billion in 2021.

The bank has been plagued with scandal since a 2022 court ruling that the Swiss bank helped the Bulgarian mafia to launder money as well as US hedge fund disasters, and implication in a scandal in Mozambique.

The shockingly poor performance led the company to announce that none of its executives, including new Chief Executive, Ulrich Körner, would receive a bonus this year. Senior managers also took significant pay cuts.

However, if an economic recovery programme goes to plan, executives and senior managers are expected to receive a bonus from a €354 million fund.

Despite the recovery plan, the company is expecting to close 2023 at a loss.