Credit Suisse severance pay capped at £250k
The day has come. Credit Suisse isn't commenting, but sources say this is the week that UBS is terminating the Credit Suisse people it doesn't want. Cuts are expected to impact up to 30% of Credit Suisse's London investment bankers; in the markets business, the cuts may be higher still.
There is, however, a possible upside to being chopped by Credit Suisse: the severance. It's pretty generous.
Sources at Credit Suisse say markets professionals in London are being offered four weeks' severance pay for every year worked, plus notice and holiday pay. The total package is understood to be capped at £250k ($321k). Credit Suisse isn't commenting on that either.
Standard severance pay at investment banks is in the region of two weeks or fewer for each year worked. Deutsche Bank only awards the statutory minimum in severance pay to people it lets go.
One departing Credit Suisse director said the generous payments will be welcomed. "A lot of people are going to struggle outside Credit Suisse," he says. "There are many people who have spent their entire careers at Credit Suisse. People who joined more recently will find it easier to jump ship."
He added that there's a lot of disgruntlement in the ranks below managing director. "Management have been apologetic, but there's some bitterness that senior managers are being transferred to UBS when large parts of the rank and file are not.
"Many feel they didn't get a fair hearing and that they never even met with UBS," he adds.
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