Credit Suisse has cancelled bonuses for its executives, citing “material weakness” in its financial reporting.
According to CNN, Credit Suisse delayed its annual report after the SEC raised questions about 2019 and 2020 cash flow statements. As a result, the company took a closer look and concluded that “the group’s internal control over financial reporting was not effective,” and failed to identify potential risks.
In addition, the company’s board found that “material weakness could result in misstatements of account balances or disclosures that would result in a material misstatement to the annual financial statements of Credit Suisse,” the annual report said. The company is working on a “remediation plan” to strengthen controls, according to CNN.
In the meantime, Credit Suisse is canceling bonuses for its executives, and chairman Axel Lehmann has offered to “voluntarily “waive” a $1.6 million stock award as a result of the company’s “poor financial performance.”