Morning coffee. Credit Suisse’s late bonus generosity isn’t necessarily working. Intensive sponsored layoffs are hurting the fintech industry

Given the choice to work elsewhere now, would you stay at Credit Suisse? What if you were offered a big mid-year retention bonus for staying? Not yet?

If Credit Suisse wants to keep anyone now, it presumably wants to keep CEOs in its investment banking division. In particular, it is believed to want to retain CEOs covering hot sectors such as fintech and energy, energy and renewables. And yet, these are the Credit Suisse CEOs who are leaving.

Bloomberg reports that both Prescott Johnson, Managing Director of Credit Suisse’s energy and infrastructure team and David Goldstein, managing director of Credit Suisse’s fintech team, is buying. Both are based in the US and have worked at Credit Suisse for over a decade; Johnson was there 12 years, Goldstein 16. Johnson joins Bank of America. Goldstein goes to Jeffries.

The departures come after Credit Suisse announced last week that its investment bank would be subject to further restructuring before a new plan is revealed in the third quarter. However, Credit Suisse’s M&A bankers should be protected from the turbulence; The bank plans to shift to an “advisory-led” model, and its M&A revenue grew 44% year-over-year in the second quarter, following “significant deal closing activity.” David Miller, global head of investment banking and capital markets, said in June that the bank is hiring. After already adding 55 CEOs in the first six months of the year (up from 69 leaving in 2021), CS planned to hire one more. 40, Miller said. Credit Suisse may be restructuring, but its M&A and capital markets business is supposedly in growth mode.


If that’s not enough to keep sales people, Credit Suisse recently handed out $300 million in retention bonuses in a month to help it retain talent. These bonuses targeted employees in Asia and North America, and just one senior finance sponsor banker reportedly received $10 million. Goldstein and Johnson certainly got something.

Not enough, apparently. And the risk is that where they have gone, others will go. Despite the declarations of consistency, there is turbulence. Christian Meissner, the head of Credit Suisse’s investment bank, is leaving, and it is not clear who will replace him. The $300 million in retention bonuses doesn’t mean much after last year’s bonus cuts, and even though this year’s bonuses are likely to be cut as well. Furthermore, the bank’s first-half loss of CHF 1.9 billion and the investment bank’s loss of CHF 1.1 billion for the 2nd quarter do not bode well for future returns on previously issued bonuses. Unfortunately for Credit Suisse, Goldstein and Johnson may not be the last bank MDs to leave this year.

Individually, the 780 people who were laid off at Robinhood in the latest round of layoffs are at least no longer associated with what appears to be a somewhat seedy corporate culture.

In a letter to staff about job cuts, CEO Vlad Tenev repeatedly refers to his acolytes as “Robinhoodies” and bemoans the need to let go of almost a quarter of it The robinhoodies go. However, needs should, and Tenev says each Hoodie will soon receive a Slack message informing them of their status. If they are no longer wanted, this will be followed by a schedule to discuss their specific situation live. “We know this news is hard for all Robinhoodies and we are also offering healthcare support to those who would like it,” adds Vlad.

Although feelings are strong, a variety of partners are persistently encouraged. Credit Suisse employees can at least celebrate the fact that they are not known by the collective noun “Suisseys,” even if the bank is likely to let many of them go soon.

At the same time…

Shares in Robinhood jumped 13% after it said it was buying Hoodies. (Bloomberg)

PayPal saved $360 million by cutting staff. (Bloomberg)

The Hong Kong-based company, which appears to be owned by former UBS banker Kelvin Choi, appears to be worth: $310 billion after a 22,000% increase in value. AMTD Digital grows digital businesses, including financial services companies, and is now worth more than Bank of America, Morgan Stanley or Goldman Sachs. The price increase may have something to do with the fact that only a small portion of AMTD’s shares are available for trading, making it easier for the price to increase. Choi is intolerant of haters. there are envious people and [are] “There are those who are jealous, and those who are cold-eyed and mocking and malicious are slanderers,” he announced last year. (Bloomberg)

SocGen says it is in “cautious but not catastrophic” mode. (Financial Times)

Point72 hired two economists. Sofia Drosos as economist and strategist based in New York and Soeren Raden as head of European economic research based in London.. (Hedgeweek)

Don’t be too ambitious with your holiday plans. “Trust your gut and aim for the experiences that feel most pleasurable when you imagine them.” (WSJ)

Click here to create a profile on eFinancialCareers. Make yourself visible to recruiters who are hiring for jobs where you are not known by your pet name.

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