Credit Suisse considers idea of offering equity stake to senior investment bankers. Credit: Wokandapix from Pixabay.

The board members of Credit Suisse Group have presented an idea of allowing its senior dealmakers to own equity stakes at the bank as part of a plan to retain talent and reduce costs, reported Bloomberg.

The idea was rendered to the Swiss banking group’s senior investment bankers by Michael Klein and Blythe Masters at a global townhall meeting held last Thursday, stated the news agency citing sources privy to the matter.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Both Klein and Masters are members of the board of directors of Credit Suisse.

The newly proposed option could lead to a spinout of the firm’s advisory and underwriting arm.

However, no details over the consequences of the option, if it is implemented, were provided by the directors.

The amount of interest shown by Credit Suisse, which is working to overhaul its unprofitable investment bank, also remains vague.   

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to Bloomberg, a bank representative has refused to make any comment on the development.

Credit Suisse is yet to finalise the fate of its investment bank amid commitment to its investors to reduce expenses of the beleaguered unit.

In addition, the bank’s board members have provided different views on the level of reductions that should be carried out without affecting services offered to its wealth management clients, stated the source.

Even though Credit Suisse offered as much as $1.3bn in retention packages and awards to contain departures, the group witnessed the exit of over 60 senior dealmakers in the last two years.

By offering direct stake to the dealmakers, the bank aims to reduce the share of new dealmaking profits. This structure could give less incentives to the bankers and allow Credit Suisse to focus on other divisions.

The latest development comes as Credit Suisse Group announced a deal to buy out its Chinese partner’s remain stake in a local joint venture (JV) for CNY1.14 billion ($160m).