Restricted stock pads out CS pay

Credit Suisse is said to have tied in more of its bankers with restricted stock during the recent bonus round.

According to MarketWatch, the Credit Suisse Group has broadened the use of its restricted stock 'Performance Incentive Plan.'

The plan was conceived at the end of 2004 in order to retain managing directors (MDs) after Credit Suisse First Boston announced plans to make as many as 300 employees redundant. In 2005 it covered around 100 managing directors, who collectively received restricted stock worth around $543m. The stock was apparently deferred for five years to ensure CSFB's MDs didn't quit while the bank restructured.

This year, Marketwatch says the plan has been extended to a wider circle of MDs, including 900 at Credit Suisse's New York office. The bank was unable to immediately confirm whether it has also been implemented in the UK.

If Credit Suisse has indeed increased the deferred stock proportion of its bonuses in Europe, it may be swimming against the tide. Last month it was reported that Deutsche Bank reduced the cash-to-stock ratio of bonuses this year, and offered record cash payouts.

Headhunters say that banks such as Royal Bank of Scotland, which pay nothing but cash bonuses, are able to pay out less overall than their stock-paying rivals.