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Credit Suisse Might Cut 2020 Bonuses on Coronavirus Concern
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Credit SuisseGroup plans to cut 2020 bonus distribution as it seeks to retain sufficient liquidity to face the consequences of the global coronavirus outbreak. The news was reported by Channel News Asia.
The Swiss bank has shown ample support toward the government’s initiative to aid firms that have been seriously impacted by the pandemic. Credit Suisse has provided CHF 1.24 billion in loans to about 7,800 companies as part of the government’s CHF 20-billion program of state-backed loans at no or low interest.
As the virus has continued to spread in Switzerland, the Financial Market Supervisory Authority noted that the financial institutions are well-poised to deal with extreme stress scenarios. However, it suggested firms to be more prudent with their distribution policies, especially related to share buyback programs.
Credit Suisse, nevertheless, is planning on distributing the 2019 dividend. Per the article by Channel News Asia, the company’s board would decide upon the dividend to propose for 2020 later this year. Notably, it suspended the CHF 1.5-billion share buyback plan for 2020 as the pandemic continues to impact economic and market conditions.
The former chief executive officer of Credit Suisse, Tidjane Thiam, received a 15% lower pay package for services he provided to the bank in 2019 on tough operating backdrop during the year and the bank’s involvement in the spying scandal.
The company’s peer UBS Group (UBS - Free Report) also paid its CEO 11% lower compensation for 2019. Further, the bank’s employee bonus pool slumped 14%. Also, it seeks to distribute the 2019 dividend amounting to more than 50% of its annual profit. Barclays (BCS - Free Report) and HSBC Holdings (HSBC - Free Report) are scheduled to pay dividends on Apr 3 and Apr 14, respectively.
Shares of Credit Suisse have lost 29.5% over the past six months compared with a 33.9% decline of the industry it belongs to.
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Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Credit Suisse Might Cut 2020 Bonuses on Coronavirus Concern
Credit SuisseGroup plans to cut 2020 bonus distribution as it seeks to retain sufficient liquidity to face the consequences of the global coronavirus outbreak. The news was reported by Channel News Asia.
The Swiss bank has shown ample support toward the government’s initiative to aid firms that have been seriously impacted by the pandemic. Credit Suisse has provided CHF 1.24 billion in loans to about 7,800 companies as part of the government’s CHF 20-billion program of state-backed loans at no or low interest.
As the virus has continued to spread in Switzerland, the Financial Market Supervisory Authority noted that the financial institutions are well-poised to deal with extreme stress scenarios. However, it suggested firms to be more prudent with their distribution policies, especially related to share buyback programs.
Credit Suisse, nevertheless, is planning on distributing the 2019 dividend. Per the article by Channel News Asia, the company’s board would decide upon the dividend to propose for 2020 later this year. Notably, it suspended the CHF 1.5-billion share buyback plan for 2020 as the pandemic continues to impact economic and market conditions.
The former chief executive officer of Credit Suisse, Tidjane Thiam, received a 15% lower pay package for services he provided to the bank in 2019 on tough operating backdrop during the year and the bank’s involvement in the spying scandal.
The company’s peer UBS Group (UBS - Free Report) also paid its CEO 11% lower compensation for 2019. Further, the bank’s employee bonus pool slumped 14%. Also, it seeks to distribute the 2019 dividend amounting to more than 50% of its annual profit. Barclays (BCS - Free Report) and HSBC Holdings (HSBC - Free Report) are scheduled to pay dividends on Apr 3 and Apr 14, respectively.
Shares of Credit Suisse have lost 29.5% over the past six months compared with a 33.9% decline of the industry it belongs to.
The company currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>