DAfter the emergency sale of Credit Suisse (CS) to its rival UBS, the Swiss government set guidelines for bonus payments at both banks. All outstanding variable compensation for members of the Credit Suisse Executive Board will be canceled, the government announced on Wednesday. The bonuses of high managers are reduced by up to 50 percent.
According to the government, the measures affect a good 1000 employees of the institute and, according to the current state of knowledge, mean a reduction in the variable remuneration of CHF 50 to 60 million due by the end of 2022. The total outstanding bonus payments for all CS employees are estimated at CHF 635 million.
Credit Suisse must also check whether paid bonuses can be reclaimed, the government said. In its remuneration system, UBS is obliged to specify the successful – i.e. as profitable as possible – utilization of the Credit Suisse assets covered by the state loss guarantee as a criterion.
The Swiss Banking Act provides that the government can order remuneration measures if a systemically important bank is granted direct or indirect state aid from federal funds. Shortly after the emergency takeover, the government had frozen bonus payments at Credit Suisse.