Investment bank Credit Suisse has told staff they will be forced to repay some of their bonuses if they exit the company within three years.
According to The Telegraph newspaper, bankers were told today about plans for a new system for bonuses.
It comes after the company’s chairman Sir Antonio Horta-Osorio was forced to step down after just over a year in the role.
Some bankers will be subject to a clawback provision, with around a fifth of the bank’s staff reportedly affected.
The changes mean that those managing directors and directors will be forced to repay a pro rata amount of their bonus should they depart the company within three years.
However, the bank told staff they would receive a higher cash amount upfront.
In an email, the bank’s executive board outlined how 2021 had been a “difficult year” which had created “a challenging context for the bonus pool”.
It added: “However, our aim continues to be to fairly recognise your individual contributions, whilst reflecting the headwinds we faced together over the last year.”
The bank had a tumultuous year last year including a series of writedowns following its involvement with lender Greensill and legal action over a $2bn Mozambique bond scandal.
A spokesperson for Credit Suisse said: “With regards to executive compensation, Credit Suisse aims to strike an appropriate balance with the interests of shareholders and wider stakeholders.
“We have also said that we will further align remuneration with our new strategic objectives, including our renewed focus on risk management. One example of this alignment is the introduction of a one-time share plan for our senior managers, which will vest in three years’ time, but only if certain metrics tied to our strategic objectives are reached.”