{ "docId": "019dd923-5e88-73ef-bd5c-8d796c361b8f", "docSlug": "72175b19b60e1794", "documentTitle": "id19 an effective approach 3 case studies", "authorId": "CreditSuisse", "authorName": "CPA Australia", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.704, "pageNumber": 7, "pageCount": 20, "prevPage": 6, "nextPage": 8, "slideType": "other", "function": "summarize", "density": "overcrowded", "nDataPoints": 4, "notes": "This page appears to be an excerpt from a larger report or case study, indicated by the page number 352 and footnote markers.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd5c-8d796c361b8f/7", "deckHref": "/decks/019dd923-5e88-73ef-bd5c-8d796c361b8f", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd5c-8d796c361b8f.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd5c-8d796c361b8f#slide-7", "components": [ { "bbox": null, "kind": "callout", "text": "In total, CEO Thiam received approximately 15% lower compensation in 2019 compared to 2018.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-1043-7233-b240-b7c3b45cdafe", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "CEO compensation reduction: 15%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-1043-7233-b240-ba03f998c651", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.784, "x": 0.108, "y": 0.21 }, "kind": "paragraph", "text": "Credit Suisse's Compensation Committee is chaired by an independent director and comprises solely of independent directors. In Credit Suisse's 2019 annual report, Compensation Committee Chairman Kai S. Nargolwala specifically addressed the spying incidents which he termed as \"observation events\". He asserted that Credit Suisse's independent investigation found former COO Bouée to be chiefly responsible for the observation events and that no other key management personnel was involved. Upon his resignation, Bouée forfeited all his outstanding deferred compensation awards. Thiam also accepted accountability for the events and had his 2019 non-financial short-term incentives (STI) score reduced to 50% from 100% a year before.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16225a45-d324-4617-adb2-1e8bacd9f384", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.784, "x": 0.108, "y": 0.395 }, "kind": "paragraph", "text": "In total, CEO Thiam received approximately 15% lower compensation in 2019 compared to 2018. The reduction was mainly due to the lower achievement of STI financial performance targets, a 50% score for non-financial STI, and a lower fair value of the 2019 long-term incentives (LTI) opportunity compared with the prior year LTI.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ac032d2-f905-4411-8584-73c85bcf0a0d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.784, "x": 0.108, "y": 0.485 }, "kind": "paragraph", "text": "The key elements of the compensation framework included both fixed and variable compensation. Base salary is based on relevant skills, qualifications, experience, responsibilities and external market factors. Pension and benefits are consistent with local market practices. For variable compensation, 2019 STI was based on equal weightage (of 33.3% each) given to adjusted income before taxes, return on tangible shareholders' equity, and non-financial criteria. In determining the 2019 LTI, equal weightage (33.3%) was given to the three-year average return on tangible equity, three-year average tangible book value per share, as well as the relative total shareholder return.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "83054324-e941-45ac-9424-146baa3ebc17", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.784, "x": 0.108, "y": 0.615 }, "kind": "paragraph", "text": "With regard to variable compensation awarded, approximately 54% would be deferred. The 2019 annual report also stated that Credit Suisse neither has \"golden parachute\" agreements nor any other predetermined termination agreements for employees. There are also no special severance provisions to executive board members beyond the regular compensation awarded during the notice period.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ecb707c6-6e0a-48a0-b227-10469c222f3f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.784, "x": 0.108, "y": 0.82 }, "kind": "paragraph", "text": "On 6 February 2020, Thiam finally resigned as CEO. The board unanimously accepted his resignation. Thiam had previously expressed his desire to stay on but was unable to subdue Rohner in an internal power struggle without the backing of the board despite the support of major shareholders. The board also unanimously decided to support Rohner to complete his full term until April 2021.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f9d9e2ab-b911-4642-9d35-094d8471000d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.024, "w": 0.365, "x": 0.108, "y": 0.795 }, "kind": "title", "text": "Thiam takes the fall", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "44a6ca45-e657-4f0a-ac9c-97a0f7e8fe41", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.024, "w": 0.295, "x": 0.108, "y": 0.183 }, "kind": "title", "text": "Compensation", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b4e126f2-9e17-48c9-8a94-ae4e06c1a501", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "e7028706-4342-4da0-8ad2-cbc722416d43", "evidence": "The components mention 'CEO Thiam received approximately 15% lower compensation in 2019 compared to 2018', indicating an audience interested in CEO compensation.", "confidence": 0.7 }, { "name": "Quantification", "slug": "quantification", "agent": null, "layer": "slide", "matchId": "838ff470-0ea2-4567-9a12-918e038eb206", "evidence": "The slide mentions specific numbers such as '15% lower compensation', '54% would be deferred', and 'approximately 15% lower compensation in 2019 compared to 2018'.", "confidence": 0.8 } ], "frameworks": [], "arcBeats": [ { "to": 8, "from": 5, "beatId": "42c077d2-9d54-4bec-981a-4dce6471f5a3", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Problem & Complication", "beatSlug": "consultants-gambit-problem-complication", "evidence": "Analysis of Credit Suisse's board of directors and misadventures", "position": 1, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [ { "to": 11, "from": 5, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "c5b2b6f5-fd86-4850-8011-673600ab92cb", "evidence": "Discussion of Credit Suisse's crisis and remedial actions", "position": 0, "objective": "Highlighting the consequences of inaction", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }