* Credit Suisse CEO Thiam received 11.9 mln Sfr for 2016
* Overall bonus pool up 6 pct to 3.09 bln Sfr
* FY net loss now 2.7 bln Sfr after new RMBS settlement
* Bank says preparations continuing for Swiss unit IPO
(Adds comments from rating agency, detail)
By Joshua Franklin
ZURICH, March 24 Credit Suisse Chief
Executive Tidjane Thiam's pay for his first full year in the job
swelled to 11.9 million Swiss francs ($12 million), while
bonuses rose 6 percent despite back-to-back annual losses at
Switzerland's second-biggest bank.
Executive pay is a hot-button issue in Switzerland, with
voters backing a "fat cat" referendum in 2013 giving
shareholders a binding vote on pay.
Thiam's pay packet followed a near-3 billion franc loss at
Credit Suisse in 2016 amid a major restructuring and penalties
for the sale of toxic mortgage debt in the run-up to the
"Overall, the board considered Mr Thiam's strong leadership,
consistent execution of the group's communicated strategy,
effective delivery of cost efficiencies, principled and ethical
conduct, and his role in driving the group towards a stronger
capital position in determining that Mr Thiam had met his
performance targets set for the year," the bank said in its
annual report on Friday.
Thiam, a former Ivorian government minister who is reshaping
the bank by boosting wealth management and scaling back
investment banking, earned 4.57 million francs in 2015 after
joining Credit Suisse from British insurer Prudential at
mid-year. He had requested a 40 percent bonus cut that year.
Chairman Urs Rohner's compensation rose to 3.98 million
francs in 2016 from 3.2 million. The bank's bonus pool increased
to 3.09 billion francs.
Rival UBS paid Chief Executive Sergio Ermotti 13.7
million francs last year and cut its bonus pool by 17 percent to
2.9 billion francs. Deutsche Bank CEO John Cryan took home 3.8
million euros ($4.1 million) last year.
Credit Suisse upped its net loss for 2016 to 2.71 billion
francs from 2.44 billion after agreeing in principle to settle a
residential mortgage-backed securities (RMBS) case with the
National Credit Union Administration Board in the United States.
This cut the bank's common equity tier 1 ratio, a closely
watched measure of balance sheet strength, to 11.5 percent from
11.6 percent, heightening its need to raise capital.
Credit Suisse's current plan is to raise up to 4 billion
francs via an initial public offering (IPO) of a minority stake
in its Swiss banking division.
However, it is also considering a quick-fire share sale at
group level and its board of directors is set to decide in April
how to proceed, Reuters has reported.
A speedy share sale via a so-called accelerated bookbuilding
(ABB) could be a simpler solution, according to Bernd Ackermann,
who covers Credit Suisse for S&P Global Ratings.
"In terms of the money it can raise, it is neutral to our
ratings if it's through the IPO or an accelerated bookbuilding,"
Ackermann told Reuters on Thursday.
"But it could be better not to have the more complicated,
fragmented structure you'd get through the IPO."
One hurdle to clear for an ABB is the amount of new stock
shareholders authorise the bank to issue. In its invitation to
next month's annual meeting, it proposed increasing its
authorised capital only for its scrip dividend.
($1 = 0.9956 Swiss francs)
($1 = 0.9263 euros)
(Editing by Mark Potter)