Ethos welcomes the bank's decision not to pay variable remuneration and not to ask shareholders to grant discharge to the members of both the board of directors and the executive management for the year 2020. Investigations have also been opened following two financial scandals which expose the bank to significant financial losses.
Ethos welcomes Credit Suisse's decision not to pay variable remuneration to the executive management for the year 2020 and not to ask shareholders to grant discharge to the members of both the board of directors and the executive management. "In view of the significant losses to which the bank is exposed in the context of two recent cases (Greensill and Archegos Capital), it is normal that the board of directors asks not to be discharged, underlines Vincent Kaufmann, CEO of Ethos. Accordingly, shareholders will retain all of their rights while being able to better assess the full extent of the losses suffered, the reasons which led to these losses and the responsibility of the board of directors."
Ethos also takes notice of the opening by the board of directors of two investigations, to be carried out by external parties, in connection with these recent cases. Ethos demands that these investigations also examine the accountability of the board of directors and that their results be made public.
On Tuesday Credit Suisse announced a loss of around CHF 900 million for the first quarter of 2021, including a cost of CHF 4.4 billion in connection with the failure of hedge fund Archegos Capital. Ethos had already indicated last week that it would recommend shareholders to oppose votes on variable remuneration as well as the discharge at the 2021 general meeting (AGM) in connection with recent affairs. Ethos has been critical for many years of the governance of the bank, especially in regards to the key oversight function of the board of directors. Ethos hopes that the change of chairman planned for the next AGM will allow the establishment of a new corporate culture with a more focused approach on risk management. Ethos will now analyse in detail the other points submitted to the shareholders' vote before finalising its voting recommendations for the 2021 AGM which will take place on April 30.