(Reuters) – First Republic Bank said on Wednesday all its executive officers have decided to take no annual bonuses for 2023, and founder and Executive Chair Jim Herbert will draw no salary effective March 12.
The disclosure comes as First Republic explores ways to stay in business amid a banking crisis that has already wiped out two lenders in the United States.
The bank’s executives have also forfeited performance-based incentives vesting in 2023, according to a regulatory filing.
The rescue effort for Swiss banking giant Credit Suisse has also put the bonus pools of banking executives under the spotlight. On Tuesday, Swiss authorities imposed curbs on bonus payments for Credit Suisse employees.
First Republic has been working with JPMorgan Chase & Co to raise funds, a source familiar with the matter told Reuters on Monday, after a $30 billion deposit infusion into the bank last week failed to reassure investors.
(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta and Devika Syamnath)