REFILE-UPDATE 3-C.Suisse boss bags $14 mln despite share slump

(Corrects Reuters instrument code for CS in fifth paragraph)

* Dougan bonus over 10 mln Sfr after shares fall 26pct

* Rival Gruebel at UBS waived bonus, share fall smaller
* Quintella the highest paid CS executive with 15.6 mln Sfr

* Shares up 0.6 pct on Thursday

(Recasts, adds details, updates shares)

By Martin de Sa’Pinto

ZURICH, March 24 (Reuters) – Credit Suisse boss Brady Dougan
took $14 million in pay in 2010, despite the bank’s shares
losing a quarter of their value, while rival UBS CEO Oswald
Gruebel waived his bonus after a much smaller share price fall.

Dougan’s fixed pay doubled to 2.5 million Swiss francs ($2.8
million) and was topped by a 10.2 million franc bonus, making
him one of the world’s highest-paid bankers for the second year.

Dougan’s total pay of 12.8 million francs was down a third
from 2009, when he also received shares worth some 71 million
francs under a five-year bonus plan.

His base pay is lower than Gruebel’s, but the UBS chief took
no bonus for the second consecutive year in 2010, citing a fall
in his bank’s share price.

UBS (UBSN.VX: Quote, Profile, Research)(UBS.N: Quote, Profile, Research) shares lost 4.3 percent in 2010, while
Credit Suisse (CSGN.VX

According to the figures released in the bank’s annual
report, Dougan was not Credit Suisse’s highest paid executive
this year — that position went to Brazilian-born Antonio
Quintella, CEO of Credit Suisse Americas, with 15.6 million

U.S. bankers’ pay has swollen again this year: JPMorgan
(JPM.N: Quote, Profile, Research) CEO Jamie Dimon is in line for stock and options worth
$17 million for 2010, and Goldman Sachs (GS.N: Quote, Profile, Research) chief Lloyd
Blankfein was awarded $12.6 million in stock.

But in Europe fiercer criticism of hefty payouts has
prompted some reworking of bonus schemes, if not the actual sums
of money involved, as politicians and the public voice anger at
big rewards so soon after taxpayers bailed out the industry.

Total compensation for the Credit Suisse executive board was
down by a third, but its 16 members still took home an average
of 10 million francs each.

As at rival UBS, the bulk of the bonus payments can only be
claimed over time, and portions can be “clawed back” if the bank
performs badly.

Swiss compensation rules introduced in 2010 require the
country’s largest banks and insurers to defer the bulk of
executive bonuses, although they do not impose bonus caps.

FACTBOX-Banker pay and bonuses for 2010 [ID:nLDE70J1AL]

Asset trends at Credit Suisse, UBS:



Credit Suisse bucked a trend shown by rival banks where
investment banking heads rather than company bosses have topped
the pay scale.

Pay last year for investment banking stars at UBS, Deutsche
Bank (DBKGn.DE: Quote, Profile, Research), HSBC (HSBA.L: Quote, Profile, Research) and Barclays (BARC.L: Quote, Profile, Research) eclipsed
the bonuses of their bosses as pay rebounded in 2010, sparking
another wave of criticism that pay has recovered near to
pre-crisis levels.

Credit Suisse said it was not disclosing investment banking
CEO Eric Varvel’s total pay this year, as it only discloses the
compensation of the group CEO, the highest paid employee and the
executive board.

At 1108 GMT, shares in Credit Suisse were up 0.7 percent,
tracking a firmer European Banks Index (.SX7P: Quote, Profile, Research).

As well as reining in compensation, Credit Suisse and UBS
have both cut back on capital-sapping activities like
proprietary trading more than most rivals due to an anticipated
toughening of Swiss rules relating to the amount of capital they
need to hold.

While client money continued to flow into the wealth
management business, weak client trading curbed profits.

Credit Suisse also cut its 2010 dividend to 1.30 francs from
2.00 francs a year earlier. UBS currently pays no dividend.

Credit Suisse also confirmed its return on equity (RoE)
target of “above 15 percent” stated when the company released
annual results, lower than its previous target of “above 18
percent”. It had a RoE of 14.4 percent in 2010.
(Editing by Hans Peters and Sophie Walker)
($1=.9106 Swiss Franc)

REFILE-UPDATE 3-C.Suisse boss bags $14 mln despite share slump