Top Credit Suisse Holder Seeks Chairman Pay Cut After Blunders
(Bloomberg) -- One of Credit Suisse Group AG’s biggest shareholders said Chairman Urs Rohner should pay for a string of recent blunders.
“Given recent events and past performance, I certainly think it would be appropriate for Mr. Rohner to forgo any further compensation from Credit Suisse,” David Herro, the chief investment officer at Harris Associates, said in an emailed statement.
Herro, who called for Rohner’s ouster last year in a standoff with former Chief Executive Officer Tidjane Thiam, issued his statement Monday after Switzerland’s second largest bank said it may face significant losses from exposures to wrong-way bets by Archegos Capital Management. Weeks earlier, management warned it would have to wind down supply-chain finance funds in its asset-management arm due to valuation uncertainties.
Credit Suisse shares tumbled 14% Monday at 5:44 p.m. in Zurich, their worst one-day drop since March 12, 2020.
The bank has already withheld bonuses from some senior employees involved in the supply-chain finance funds debacle -- including the executive board, and replaced the head of its asset-management unit.
Separately, proxy adviser Ethos said investors should reject the proposed bonuses of the management for the financial year 2020 at the upcoming annual general meeting, in light of the potential losses. In addition, the adviser called for investors to not grant discharge to the board and executive management in order to retain their rights to file legal actions against them.
Credit Suisse shares have lost more than 70% of their value under Rohner, who is a former lawyer and media executive. In recent years, the chairman has voluntarily cut his salary twice due to under-performance. His total compensation for 2020 was proposed for 4.7 million francs ($5 million).
A spokesman for Credit Suisse declined to comment.
©2021 Bloomberg L.P.