Credit Suisse, the second- biggest Swiss bank, raised chief executive officer Brady Dougan's pay by 26 per cent for 2013, even as he missed targets set last year by the bank.

Mr Dougan (54), received total compensation of 9.79 million Swiss francs (€8 million), including a salary of 2.5 million francs. He earned 7.77 million francs the previous year.

Credit Suisse published a target bonus level for Mr Dougan last year for the first time, as well as financial goals linked to the awards.

The bank missed targets for its return-on-equity and cost-to-income ratios, which are used to determine two- thirds of the CEO’s bonus.

Mr Dougan’s raise comes as executive salaries in Switzerland are under increasing scrutiny. Swiss voters last year approved giving shareholders a binding say on pay. All publicly listed Swiss companies have to implement this so-called fat-cat initiative by 2015.

Mr Dougan’s target bonus of 6.75 million francs was contingent on Credit Suisse reaching an underlying return on equity of 11 per cent, a ratio of cost to income of 70 per cent and a qualitative assessment of capital strength, strategy execution and the management of risks and employees, the bank said in the annual report for 2012.

Credit Suisse reported an underlying return on equity of 10 per cent for 2013, unchanged from the previous year, and an underlying cost-to-income ratio of 77 per cent, down from 80 per cent the previous year.

Bloomberg