ZURICH (Reuters). Credit Suisse (SIX:). The scandal-hit bank’s large shareholders are supportive of the bank’s strategy. Antonio Horta Osorio, chairman, told Swiss newspaper NZZ am Sonntag that Antonio Horta Osorio said the group will also be overhauling its compensation system for executive to lower risk.

Horta Osorio stated that they are close to their shareholders, particularly the six largest which together hold around 30% of Capital.

“We believe that we are able to understand their priorities. They fully support our strategy.”

Credit Suisse announced Thursday a restructuring, saying that it would reduce its number of investment bankers as well as invest in wealth management. This is in response to a loose culture that cost it billions over a series scandals.

Horta Osorio joined Switzerland’s Lloyds (LON) Bank in April. He said he would place risk management and accountability at the core of operations at Switzerland’s second-largest lender.

Investors were not enthusiastic about the revamp, Credit Suisse shares plummeting more than 5% following the announcement. Analysts also stated that there was disappointment at the lack of boldness in the proposed changes.

Credit Suisse Chief Executive Thomas Gottstein also participated in Sunday’s interview and said that he believed the changes to be “substantial.”

The fact that we have transferred CHF 3.29 billion (or about 25%) of our capital to wealth management is a testament to this. Our goal is to recruit 500 more client advisors in 2024.

Gottstein stated that after examining various options over the past few months, he concluded that this strategy could yield the highest returns in the medium-term – particularly in relation to risk which is significantly decreasing.

According to media reports, the executives denied any differences. “The fact is that we agreed on all important questions,” Gottstein said.

Horta Osorio explained that Credit Suisse also is adapting its compensation models to decrease risk. He would provide details about the changes in the first quarter of 2022.

According to an August review, the bank’s loss of $5.5 billion on Archegos investment fund Archegos was due to “a lackadaisical” approach to risk and “a lackof accountability”.

NZZ am Sonntag was told by the chairman that they would structure variable remuneration so there’s no incentive for employees to take too many risks. 

We will tie wages closer to economic gains and risks. Management is not paid higher bonuses if the business generates capital intensive profits.

($1 = 0.9120 Swiss francs)