The debacle over the US hedge fund Archegos caused Credit Suisse shares to plummet by 14 percent. (Read the news: Fund crash and mega write-offs – Credit Suisse is hit hard. ) Now investors are calling on the top of the bank to waive their salaries. The CS President Urs Rohner, who will resign in four weeks, should go away empty-handed until his departure.
“In light of recent events and performance to date, I believe it appropriate that Mr. Rohner waive any further compensation from Credit Suisse,” said David Herro of Harris Associates. (Credit Suisse needs a new culture – Read our comment on the CS mega flop)
Second debacle within weeks
The US asset manager Harris is one of the largest investors in the big bank. Bloomberg had first reported Herro’s claim. Urs Rohner is entitled to wages and bonuses totaling around 4.7 million francs for the 2020 financial year.
After the bankruptcy of the Australian financial company Greensill, Archegos’ imbalance is the second costly problem case within a few weeks. According to estimates, the Archegos bankruptcy could cost CS up to CHF 4 billion and Greensill up to CHF 3 billion.
Rohner’s last general assembly
The proxy advisor Ethos is therefore calling for lower bonuses for CS management one month before the general meeting. Ethos boss Vincent Kaufmann says: “Ethos has decided that in view of the possible impact of these new affairs on Credit Suisse we will recommend voting against the discharge of the board of directors and against the bonus proposals of the management for the year 2020.”
The upcoming AGM will be Rohner’s last, the former Lloyds boss António Horta-Osório will then be elected as his successor.
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