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Deferred awards are sometimes given in restricted shares that the financial institution can simply cancel. However to retain expertise amid a number of restructurings and a slumping inventory value, Credit score Suisse handed out money with a clause requiring workers to repay among the bonus in the event that they left the agency inside three years.
The Swiss financial institution stumbled via a number of money-losing quarters earlier than collapsing and being purchased by its Zurich rival earlier this yr.
For a lot of bankers that defect to rivals, hiring companies present a signing bonus that covers rewards which might be misplaced or should be repaid. However such offers aren’t common, notably if bankers transfer to a brand new business. Greater than 15% of Credit score Suisse’s employees voluntarily left the financial institution final yr.
UBS scooped up its rival for, by one measure, 5 cents on the greenback, resulting in an unprecedented $29 billion quarterly pretax revenue. The agency’s shares are up virtually 50% because it struck the deal.
Nonetheless, the financial institution has warned that the mixing will likely be lengthy and complicated, and has flagged a number of billion {dollars} in prices to resolve ongoing Credit score Suisse authorized liabilities.
(Credit score: Bloomberg)
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