THE TELEGRAPH: Credit Suisse has defended a decision to award its London-based bankers with a surprise mid-year bonus by claiming that it had no choice after its compliance with British rules on pay backfired.
The Swiss bank suggested its decision to distribute a multi-million pound bonus-round, a move that looks set to re-ignite the row over City pay, was necessary to avoid losing key people to its rivals over the next few months.
Around 400 bankers are thought to have benefited from the windfall payments which will be awarded on Wednesday, in addition to the payments traditionally made at the end of the year.
The bank consulted with the Financial Services Authority (FSA) over the September bonuses, although it is not clear if the Government was warned in advance.
Credit Suisse was at pains to point out that the payments are compliant with the FSA's latest rules and include tough conditions including deferred payment and claw-back provisions.
Even so, the extra payouts, particularly at a time of concerns over a double-dip recession, are likely to reignite the row over City pay.
Politicians and regulators, who have vowed to crack-down on lavish payments by banks in the wake of the financial crisis, will be concerned that the unusual move is a prelude to another controversial bonus season. Read on and comment >>> Louise Armitstead, Chief Business Correspondent | Tuesday, August 31, 2010
