Credit Suisse curtails payouts

Switzerland's second-largest bank said yesterday it will apply the changes to its 2010 pay round, in a move that follows stricter bonuses rules imposed across the rest of Europe.

Toughened pay regulation has yet to quash intense public scrutiny over year-end payouts, however, and governments are struggling to ward off a backlash against excessive rewards.

Switzerland's top bankers have also come under fire at home, after Credit Suisse last year awarded chief executive Brady Dougan shares worth around 71 million Swiss francs ($66.6m) under a five-year bonus plan.

The Swiss government has kicked off a legal process to tighten regulation of its top banks, including the right to force banks that are bailed out by the state to make changes to bonuses and even cancelling payouts.

After bringing in a new pay structure last year, Credit Suisse's revamped rules will see it lower the threshold for deferred bonus restrictions to 50,000 Swiss francs from 125,000 francs, leaving more employees subject to the measures.

Credit Suisse said the changes were made against a backdrop of emerging regulation and market practices and in dialogue with regulators and shareholders. It will see a lower portion of bonuses paid in cash, and shares granted under the 2010 bonus scheme delivered annually between 2012 and 2015.