Switzerland
Government cuts bonuses for 1,000 Credit Suisse managers
Credit Suisse, here the branch in Lucerne. photo
© Michael Buholzer/KEYSTONE/dpa
Switzerland has mobilized billions to save the reeling Credit Suisse. Countless managers of the bank therefore have to forgo bonus payments in whole or in part.
Around 1,000 managers at the major Swiss bank Credit Suisse, which has gotten into trouble, have had to forego part or all of their bonus payments. The Swiss government decided on Wednesday after the rescue takeover of the bank by UBS with billions in state guarantees and liquidity support from the Swiss National Bank was decided in March. The government also ordered that future bonuses at UBS be linked to risk-aware management and the non-utilization of state guarantees.
At Credit Suisse, senior management loses all outstanding variable compensation. The bonuses of the second and third management levels will be reduced by half and a quarter respectively. According to the government, the managers lose a total of between 50 and 60 million Swiss francs (50 to 60 million euros) in bonuses that can be attributed to the previous year. There is no estimate for 2023 yet. “Credit Suisse must also check whether variable remuneration that has already been paid out can be reclaimed,” said the government in Bern. Those affected have the opportunity to appeal against the cuts before the Federal Administrative Court.
After scandals, criticism of poor risk management and cash outflows in the hundreds of billions, Credit Suisse was saved by an emergency sale to UBS at the end of March. UBS pays CHF 3 billion for Credit Suisse.
