20% less Bonus for Credit Suisse employees

Credit Suisse Group AG (ADR) (NYSE:CS) announced a 20% cut from bonus pool for its employees as a measure of cutting costs in the current year. The total bonus payout amount stood at $2.52 billion and the cut is being made for four years in a row; it was $3 billion in 2011 and $ 5Billion in 2010. The worst hit in this rate cut is the employees of its private bank with the investment bank division is said to get a lion’s share of over $ 1.5 Billion which holds 20,000 employees and the rest is allocated to the private bank with the head count of 14,000.

This cut is being enforced as the bank is faced financial crisis and sluggish market in Europe and has plans to axe around 3500 jobs around the world.

Credit Suisse benefitted from these measures as it cleared $17 billion worth of loans and derivatives from its balance sheet and also saved $1.4 billion cash reserves. However, the company is said to provide other benefits like stock option, plus bond facilities available for its employees as an alternative to bonus. Credit Suisse Group AG (ADR) (NYSE:CS) were up by 1.20% to close at $27.82.