(Bloomberg) -- Credit Suisse Group AG handed out more than $300 million in a single month to retain top bankers spooked by years of scandals, losses and an ongoing leadership shakeup.
The Swiss lender granted deferred awards totaling 289 million francs ($304 million) since the end of June, according to its quarterly report. That compares with retention payments of 395 million francs for all of last year, when it was reeling from the twin failures of client Archegos Capital Management and partner Greensill Capital.
The latest payments come as Credit Suisse reported its third straight quarterly loss and replaced its chief executive officer, capping two years of management upheaval. The turmoil has prompted an exodus of talent as key bankers join rivals buoyed by a global trading boom and rising interest rates.
More than 60 rainmakers have defected to competitors and clients in the past 18 months, complicating the Swiss bank's ability to compete for lucrative merger-and-acquisition fees.
Credit Suisse has guided that its investment bank is likely to suffer yet another blow, with third-quarter trading marked by continued weakness in client activity and another expected loss in that area. It also announced a comprehensive review that will include a fundamental transformation of the unit.
In a bid to retain talent, Credit Suisse introduced a new bonus structure earlier this year with claw-back provisions that saw directors and managing directors' immediate cash payment upped.
The amount of retention awards the bank has given out has soared as its fortunes dipped. Credit Suisse awarded 40 million francs or fewer in each of 2020, 2019 and 2018, according to previous annual reports.
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