On October 20, 2009 Brady Dougan, CEO of Credit Suisse Group, has announced a new compensation plan for the bank. The announcement was followed quickly on the heels of the G-20 meeting of the previous month, where as a result of the financial crisis, the major governments laid out a set of guidelines for compensation in the financial industry. Credit Suisse Group was the first company to take G-20 guidelines, and did it a year before the proposed schedule. While responding to the concerns of regulators and policy makers, program Credit Suisse was more than a knee-jerk reaction, a new compensation plan was the result of "a 10-year journey" to change the culture of the firm. After a considerable amount of time senior management to explain the new program for employees important new problems have arisen. December 9, the UK government announced that they would impose a one time 50% tax on bankers' bonuses more than 25,000 pounds. Dougan and executive team had to decide how best to fund the tax. Was it fair or appropriate that shareholders accept the burden of taxes? In addition, it would be fair to ask the UK employees suffer in comparison to their peers in other countries? "Hide
by Clayton Rose, Aldo Sesia Source: Harvard Business School 28 pages. Publication Date: July 7, 2010. Prod. #: 311005-PDF-ENG
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