(24 February 2010 – USA) Credit Suisse reportedly offered Goldman Sachs money manager, David Greene, a US$10 million (A$11.12 million) pay increase to join the Swiss investment bank, according to Wall Street Journal reports.Mr Greene was part of a team that managed 140 Goldman clients with investments totalling US$1.8 billion.
According to reports, Mr Greene was paid US$1 million for his work at the bank in 2009, however has now been hired by Credit Suisse for an apparent yearly salary of US$11 million.
This is a monumental pay increase considering the current CEO of Goldman Sachs was awarded US$9 million for his efforts in 2009, reported the Wall Street Journal.
According to a lawsuit filed against Mr Greene and six others, who all left Goldman for positions at the Swiss bank, Goldman was aiming to prevent them from disclosing propriety information and block them from enticing the bank’s clients away.
While a spokesman for Credit Suisse declined to comment, in the suit, Goldman said that Credit Suisse is essentially trying to poach not only their employees, but also its clients.
The New York bank, who dropped the case last Friday, also drew attention to a similar wave of defections that hit Credit Suisse in 2007.
It is beyond ironic that Credit Suisse having been so damaged by the departure of its key private wealth asset managers in October 2007 has similarly preyed on Goldman Sachs, the bank said.