Credit Suisse remuneration model gets tick

Ratings house Morningstar has given the thumbs-up to a new remuneration structure employed by the Credit Suisse Australian equities team.

In an analysis of Credit Suisse directly related to the relatively high levels of staff churn endured within its Australian equities strategy over the past 12 months, Morningstar said it is “cautiously positive” about the changes to both the team and process.

However, it said that team chemistry was still to be tested.

The Morningstar analysis said Credit Suisse had also introduced a new remuneration structure in an effort to align team interests with those of their investors, with a portion of the deferred component of the team members’ bonuses being invested back into the strategy.

It said this was something it viewed positively.

It said it was too early to know whether the changes that had been made by Credit Suisse’s Australian head Stephen Giubin would be successful.

“Initial signs show some promise, but we need more concrete evidence before giving an unqualified recommendation,” the Morningstar analysis said.