SWITZERLAND:While the bank attempts to maintain "business as usual" following a turbulent week that culminated in a takeover by its toughest Swiss rival, Credit Suisse Group AG assured employees that promised bonuses and pay hikes will still be paid.
No adjustments will be made to payroll procedures, and bonuses will continue to be paid on March 24, according to a memo sent internally to employees by Credit Suisse. As pre memo, bonuses have already been paid in several nations and the bank doesn't anticipate any adjustments in the remaining ones. The memo's content was confirmed by a representative.
In a significant government-brokered transaction over the weekend, UBS Group AG agreed to acquire Credit Suisse in an effort to stem the spread of a confidence crisis that had begun on the world's financial markets. In an all-share transaction that involves substantial government guarantees and liquidity protections, the Swiss bank is paying 3 billion francs (USD 3.3 billion) for its rival.
A separate message from Chairman Axel Lehmann and Chief Executive Officer Ulrich Koerner noted: "We know that many of you will have been following the significant media attention over the past 48 hours on the future of Credit Suisse and recognise the enormous uncertainty and worry that this has caused.
The lender stated that it "will seek to continue to give severance in line with market practise" and that it will work during the ensuing period to determine whose roles may be impacted.
The bank added that it does not foresee any modifications to any previously agreed-upon upfront cash rewards and that it will pay the cash portion of the "transformation award" that was previously disclosed. Any effect on the equity component will be confirmed.
The lender stated, "We expect the merger to occur by the end of 2023 and until such time we will continue to operate as closely to 'business as usual' as is reasonably achievable, focusing on serving our clients.