Credit Suisse braces for investor backlash
Investor lobby groups are advising shareholders to vote against the pay deals
By CFOWorld staff | CFO UK | Published 11:38, 27 April 12
Credit Suisse is bracing for a backlash on Friday as investors seek a greater share of profits
An annual shareholder meetings at the bank could be heated as investors make it clear that staff and executives are getting too big a share of the spoils at the expense of shareholders.
The row has drawn in politicians and business leaders.
Unhappy investors have warned British banks to brace for a sell-off in their shares unless there is real action to stamp out excessive pay. Discontent is also clear among shareholders elsewhere in Europe and in the US, with the issue becoming a lightning rod for investors dissatisfied with the paltry returns they are getting.
Ethos, an influential group that makes recommendations to Swiss pension funds, said investors should vote against the pay plans at Credit Suisse, complaining that its bonus policy is still too high and opaque.
Shareholders in US bank Citigroup surprisingly voted down its executive pay plan last week, while protesters at Wells Fargo's AGM turned up with a huge inflated rat, pockets stuffed with dollar bills.
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