Bonuses and bonuses for top executives at Credit Suisse, whose collapse was narrowly averted thanks to a hasty takeover, are being cut, the federal government announced Wednesday. These are the amounts owed until the end of 2022. For the two lower hierarchical levels, bonuses and premiums are reduced respectively by 50% and 25%, specifies a press release from the Federal Council, which adds that this affected ” about 1,000 employees, who “will be deprived of a total amount of around 50 to 60 million francs” (equivalent amounts in euros).
By 2023, all variable compensation due at Credit Suisse’s top three tiers will also be eliminated or reduced until the bank’s actual acquisition by UBS.
Preserve the state guarantee against losses
The government also directs Credit Suisse to examine the possibilities of demanding the repayment of bonuses and bonuses already paid and to report the findings of these examinations to the Federal Department of Finance and to the Swiss financial sector regulator, Finma. The Banking Law establishes that the federal government will order compensation measures if it grants a systemically important bank, such as Credit Suisse, direct or indirect financial assistance from the Confederation media. Therefore, on March 21, the government temporarily suspended bonuses and premiums, pending final action. The implementation of the measures announced on Wednesday will be monitored by Finma.
UBS, which acquired Credit Suisse with the blessing and assistance of the federal government, must for its part include in its remuneration system, for persons responsible for managing Credit Suisse’s assets, “an incentive criterion to realize these assets in such so that this operation generates the greatest possible benefit and that it is not necessary to use the State guarantee against losses”. In addition, the future megabank must adopt criteria in its remuneration system “such as awareness of risks and compliance with the rules of conduct ”, indicates the Government.
Source: BFM TV
