Credit Suisse has cut its bonuses for top management by 40 per cent after shareholder criticism of its plans to make a 78 million Swiss franc ($78 million) payout in spite of heavy losses.

The climbdown by Switzerland’s second-largest bank is rare and represents a victory for investors who are increasingly pushing for more modest pay in an industry where profits have fallen but pay has often remained high.

In a brief statement late on Thursday, the bank said it had taken the decision after shareholders “expressed reservations” about the planned payout, reversing its defence of the bonuses earlier on the same day.