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Departing Credit Suisse CEO says post-crisis push too ambitious

Published 24/04/2015, 13:04
© Reuters. Departing CEO Dougan of Swiss bank Credit Suisse addresses the annual shareholder meeting in Zurich
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ZURICH (Reuters) - Credit Suisse 's (VX:CSGN) departing chief executive said an ambitious expansion drive following the global financial crisis ranked among his mistakes as CEO, addressing shareholders for the last time as head of the Swiss bank.

"I have certainly made my share of mistakes, as well," Brady Dougan told the Zurich-based bank's annual general meeting on Friday.

"In retrospect, for instance, I should have been more cautious about expanding the business early in the post-crisis rebound," added Dougan, who has been CEO since 2007.

Dougan, born in the U.S. Midwest, initially won admiration for leading the bank through the crisis without requiring a government bailout - unlike cross-town rival UBS (VX:UBSG).

He has since faced criticism for his decision to retain a sizeable investment bank after Switzerland imposed stiff capital requirements. This contrast with UBS, which has cut back on capital-intensive investment banking to focus far more on private banking, or financial services for wealthy clients.

Tidjane Thiam, currently the head of insurer Prudential (L:PRU), will take the reins at Credit Suisse in June with expectations high that he will scale back the investment bank and build up its wealth management arm.

At the AGM, 87 percent of investors backed the bank's proposed compensation for its executive board in the first binding shareholder vote on the issue.

Public opposition to eye-watering salaries for some executives in Switzerland culminated in a successful 2013 referendum giving shareholders a binding say on executive compensation. Credit Suisse had previously held consultative votes on compensation.

© Reuters. Departing CEO Dougan of Swiss bank Credit Suisse addresses the annual shareholder meeting in Zurich

Dougan himself took a less than 1 percent cut in pay in 2014, taking home 9.7 million Swiss francs (£6.73 million).

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