High flyer takes pay cut

In Banks on 28/03/2016 at 10:21 am

CEO of a big UK insurer left to head a big Swiss bank: more prestigious.

He gives  the lie the to Hard Truth that got to pay big bucks to attract talent to be minister. Either that or being minister is not a pretigious job. Btw, I once remarked that ministers needed “danger” money what with LKY’s “Off with his head” attitude even after he moved to the shadows.

FT reported last week:

Credit Suisse’s new chief executive Tidjane Thiam took a big pay cut to join the Swiss bank.

The bank’s annual report shows he was paid SFr1.58m for the six months he worked last year as well as a bonus of SFr2.86m, a package roughly in line with his predecessor Brady Dougan writes the FT’s Laura Noonan.

It annualises to SFr4.57m, a lot less than the £11.8m – or around SFr16.5m – Mr Thiam got for his last year at insurer Prudential. Credit Suisse paid SFr14.3m to buy Thiam out of his Prudential shares, the report showed.

Mr Thiam asked the board to cut his first bonus by 40 percent to reflect the challenging environment the bank was facing, and in solidarity with colleagues including those in global markets where the 2015 bonus pool was cut by 36 percent.

  1. This issue is brought up very often, the topic of minister’s salaries. To be honest, I’m quite undecided on it so far. I don’t know if high salaries are truly needed to attract the sort of talent required and to keep them free from corruption. But neither do I think reducing minister salaries will solve anything. TRE cybernut’s answer to everything is to simply say “because they want to pay themselves millions”. But taken as a whole in our GDP and annual spending, its not a lot, honestly. I don’t think hiring cheaper ministers or MPs will necessarily make them better.

    All I can say is I wouldn’t mind ministers salaries to continue to be competitive as long as it is not too ridiculous. To me, ministers are other people and I don’t continually harp on other people, so long as I am treated fairly in my own area. I say this even for opposition MPs, and even a future opposition government. I would not mind them earning the same. I would not expect them to lower their wages just to prove a point.

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