Credit Suisse: Finally, Incentives linked to performance...Kudo's

Thursday, December 18, 2008

From FT Alphaville  Investing Banking Heads eat what they have cooked:

New Award Form: Partner Asset Facility (PAF) units
Partner Asset Facility (PAF) units are a new form of award that compensates employees with an equity-interest in assets that originated in the Investment Banking division. The PAF units will be linked to the performance of a pool of illiquid assets.
Investment Banking Managing Directors and Directors will receive 70% -80% of their deferral in the form of PAF units and the balance in the form of ISUs.  All other employees will receive 100% of their deferred variable compensation in the form of ISUs.
Cash payments representing distributions of a portion of the award may be made to participants in the future contingent upon the performance of the underlying assets.
This is so sweet...the shareholders of CS gain and the one way train riders get "AAA" rated securities and other goodies - Lee.

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