Julius Baer’s management under CEO Boris Collardi is set to take a pay cut for 2015 following a $547.25 settlement with U.S. justice authorities over the bank’s role in helping wealthy Americans avoid taxes.
The Swiss private bank said a court date is set «shortly» to vet a deal agreed in principle last month with the U.S. Department of Justice over criminal proceedings against Baer.
«Clearly it will have a consequence. We will report specifically in our remuneration report, but I expect my salary, my team’s, and that of the board of directors to go down in 2015 versus 2014,» CEO Boris Collardi said during a briefing on Monday on full-year results, when asked if the settlement will have consequences for Baer.
Fall in Annual Profit
The cost of the settlement led to a 67 percent fall in Baer’s annual profit to 121 million francs. Collardi earned nearly 5.72 million Swiss francs for 2014, when the board as a whole under chairman Daniel Sauter took home 2.83 million francs.
Credit Suisse paid $2'815 billion in 2014 to settle a similar probe with U.S. authorities. That same year, then-Chief Executive Brady Dougan’s pay fell less than 1 percent to 9.70 million francs.
40-Percent-Drop
Deutsche Bank said last week it won’t pay bonuses to its Chief Executive John Cryan and other top executives after an annual loss of nearly 7 billion euros.
Meanwhile at Credit Suisse, which reports full-year results on Thursday, bonuses are set to fall by more than 10 percent on average, though year-end awards at its investment banking unit are set to drop by as much as 40 percent, finews.ch reported last week (article in German).
