[ by Melanie Gretchen ]

Credit Suisse CEO Brady Dougan is rising above the (falling) fray.  While the Swiss bank posted a 31% drop in profit for 2012, its Chief Executive booked a 34% pay raise - receiving an award of 7.8 million Swiss francs ($8.3 million) for 2012, versus 5.8 million francs for 2011.

The Co-Head of Credit Suisse's private banking and wealth management unit - Robert Shafir - saw his compensation for 2012 jump 25% over 2011.  Mr. Shafir, the highest paid member of Credit Suisse’s executive board, was awarded 10.6 million francs ($11.3), compared with 8.5 million francs ($9 million) in 2011.  Company-wide, the bank has been trying to re-invent itself amid the sluggish global economy and new industry regulation.  As noted above, net income for 2012 fell 31%, though shares in the bank rose about 4% for the same period.

Credit Suisse explained the basis of executive compensation.   CEO Dougan's compensation for 2012 was based on "his achievements in positioning the firm for the future," including "the significant progress made in transitioning the business to the new regulatory and market environment and to meeting challenging new capital requirements."

To this end, the firm has announced plans for a co-head of investment banking and is merging its asset management division into its wealth management and private banking unit.  In addition, it intends to cut costs by $4.8 billion by the end of 2015.  So far, the plan seems to be working.  In 2012's Q4, Credit Suisse booked a profit of 397 million francs ($422 million) for the 3 months ending 12/31/12;  for the same period one year earlier, CS lost 637 million francs ($677 million).

[C-I Note: Perhaps, then, the company expects to experience the same rewards long-term as Mr. Dougan's short-term ones?  But one thing is probable - Credit Suisse will not accept a profit decline for 2013 or 2014.  The gift for his "achievements" while standing in the line of fire is a one-time offer.]

For further details, go to [Dealbook, 3/22/13].

To contact Melanie Gretchen: melanie@compliance-insights.com.