Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0778
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2621
    -0.0002 (-0.01%)
     
  • USD/JPY

    151.3430
    -0.0290 (-0.02%)
     
  • Bitcoin USD

    70,239.80
    +552.62 (+0.79%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,388.47
    +220.40 (+0.55%)
     

The CEO of a top investment bank says Wall Street pay is out of whack

Tidjane Thiam
Tidjane Thiam

(REUTERS/Arnd Wiegmann)
Credit Suisse CEO Tidjane Thiam.

Credit Suisse CEO Tidjane Thiam says today's pay model for investment bankers "does not work."

That's according to Bloomberg's Jeffrey Voegeli, who reports that Thiam made the comments at a conference in Paris with the International Monetary Fund director, Christine Lagarde, and the Bank of England governor, Mark Carney.

"The business is structurally quite profitable provided the pay can go up and down. It's the 'and down' that they don't accept," Thiam reportedly said of investment bankers.

He said today's model of having high levels of fixed pay didn't make sense because investment banks had cyclical revenue streams.

Thiam was CEO of the insurance firm Prudential before joining Credit Suisse in March, and he wasted little time in shaking up the bank after starting there. Credit Suisse has announced plans to shrink its investment bank while building up its wealth-management division.

He is not the only Wall Street CEO to make a dig at Wall Street's compensation culture. In October, Deutsche Bank CEO John Cryan pointed to the "significant challenges" of his firm's "inflexible compensation culture."

Also in October, Barclays chairman John McFarlane spoke at the annual conference of the British Bankers' Association in October and argued that bankers earned too much.

Wall Street banks begin reporting fourth-quarter earnings on Thursday, and they are expected to announce bonuses in the coming days.

Read the full Bloomberg story here»

NOW WATCH: The median sale price of a Manhattan apartment is now $1.15 million



More From Business Insider

Advertisement