Credit Suisse said on Monday it would defer bonuses for more bankers, with much of the payouts coming in shares rather than cash - about $52K will be deferred.  Just 2 years ago, when CS surprised its senior bankers by paying part of their bonuses in troubled financial assets, about $130K was deferred.  Credit Suisse also would defer between 35% and 70% of the bonus awarded for last year, compared with 15% to 60% earlier.  Shares would vest and be delivered over 4 years.

The new house rules would create “greater transparency for all stakeholders” and reflect “the bank’s commitment to rewarding its employees for performing in a way that creates sustainable value for the bank and its shareholders."  -- CS Statement.

As many investment banks prepare to announce 2010 bonuses, political pressure is mounting to temper payouts.  Yesterday, C-I reported that Barclays CEO had joined U.K.'s contentious debate over bonuses, saying that investment bankers were being unfairly judged and held accountable for the credit crisis that plagued nearly all countries. 

Credit Suisse, whose investment banking business is based in London, said about 50% more employees would have their compensation deferred this year.  Last year as many as 8,000 senior staff had their compensation deferred.  The bank also said that it would be strict in clawing back any outstanding compensation if a division was unprofitable.

e.g., if the investment banking operation reports a loss for one or more years between 2011 and 2014, outstanding awards for employees of that division would be cut or not paid at all even if the return on equity of the entire group is positive.

Credit Suisse also will be deferring awards assigned to members of the executive board and to senior bankers, and will be split between shares and cash.  Employees below the level of director would get the entire deferred bonus in stock.   [NYT Dealbook, 1/10]