(Adds Credit Suisse comment, detail)
ZURICH, April 4 Proxy adviser Glass Lewis on
Tuesday recommended Credit Suisse shareholders reject its
proposal to pay 25.99 million Swiss francs ($25.9 million) in
short-term bonuses to the executive board in a binding vote at
the April 28 annual general meeting.
Executive pay is a hot-button issue in Switzerland, with
voters backing a "fat cat" referendum in 2013 giving
shareholders the option of blocking executive payouts, although
such revolts remain rare.
In a report to clients, San Francisco-based Glass Lewis
noted Credit Suisse's consecutive full-year losses, adding "the
short-term awards to be paid for the past fiscal year do not
reflect these results and appear to be wholly inappropriate
given the loss suffered by shareholders".
In addition, Glass Lewis opposed the proposed compensation
for Credit Suisse's board of directors, also the subject of a
binding shareholder vote.
Glass Lewis advised shareholders vote against the
re-election to Credit Suisse's board of directors of Iris
Bohnet, Andreas Koopmann and Kaikhushru Nargolwala.
"We take note of the recommendations put forward," a
spokeswoman for Credit Suisse, Switzerland's second-biggest
bank, said in an emailed statement. "Credit Suisse respects
Influential proxy adviser ISS has yet to issue its
Of the executive board's short-term bonus pool 4.17 million
francs is for Chief Executive Tidjane Thiam, part of his overall
pay packet of 11.9 million francs.
Thiam, a former insurance executive and Ivorian government
minister, is reshaping Credit Suisse by boosting wealth
management and scaling back investment banking. He has blamed
the two annual losses on the problems he inherited.
Credit Suisse posted a near-3 billion franc loss in 2016
amid the restructuring and penalties for the sale of toxic
mortgage debt in the run-up to the financial crisis.
Harris Associates, one of Credit Suisse's biggest
shareholders, plans to vote in favour of all the proposals at
the AGM, Swiss Sunday newspaper NZZ am Sonntag reported.
($1 = 1.0024 Swiss francs)
(Reporting by Joshua Franklin and Oliver Hirt; Editing by