No bonuses for Credit Suisse executives!

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The federal government suspended bonus payments to managers at major bank Credit Suisse. This has consequences for already committed but deferred compensation for the financial years up to 2022, for example in the form of share rights. The Federal Council refers to the Banking Law.

The Bundesrat had already announced on Sunday evening that Credit Suisse would not be allowed to pay a dividend during the takeover phase by UBS. In addition, you go to the bonuses of the banks.

Banking law erects barriers

On Tuesday, the Federal Council announced that the Federal Ministry of Finance (FDF) had temporarily suspended certain variable compensation for its employees by issuing an order to Credit Suisse. The basis for this is Article 10a of the Banking Act, according to which the payment of variable remuneration may be fully or partially prohibited if a systemically important bank is (in)directly granted state support from federal resources.

According to a statement from the State Secretariat for International Finance (SIF), variable salary components that are guaranteed but will only be paid in the future – such as share entitlements – have been temporarily suspended. The only exceptions are deferred payments that are already being paid out.

Bonuses already committed will not be affected

The Board of Directors of Credit Suisse itself waived variable remuneration for the 2022 financial year. The Federal Council therefore refrains “for reasons of legal certainty” from retroactively prohibiting variable remuneration that has already been committed and is paid directly to CS- employees for the 2022 fiscal year. It is also important to prevent employees from being affected who did not cause the crisis themselves.

The Bundesrat wants to have further bonus measures checked. The FDF will propose variable compensation measures for fiscal years through 2022 and beyond, as stated in the announcement. (SDA)

Source:Blick