Credit Suisse is to instigate a five per cent cut to the bonuses of its staff around the world in order to soften the impact of the UK bonus tax.
Last month, British chancellor Alistair Darling announced that bonus payouts of more than £25,000 will be subject to a one-off 50 per cent levy – money that will be taken from banks rather than the bankers who receive the cash.
As a result, Credit Suisse is cutting the bonus payouts of 400 of its UK-based managing directors by 30 per cent, as well as reducing remuneration levels for the rest of its staff.
However, the bank has not revealed how much money is now in its bonus pot and it is believed bonuses may still be higher than they were 12 months ago after the company increased its profit levels over the course of 2009.
Earlier this month, a survey of British financial service workers found that many of them supported their counterparts in the banking sector in the row over the levy.
Research carried out by the Chartered Institute of Securities & Investment found 61 per cent of respondents felt the tax was unjustified.
By Asim Shah