FDP Council of States Ruedi Noser defends bonuses

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A crystal clear verdict: according to a survey commissioned by SonntagsBlick, 61 percent of those surveyed are in favor of a ban on bonuses at systemically important Swiss banks. There’s no doubt about it: the self-service mentality of the banking world boils souls.

The Bundesrat is now also noticing this. After it became known that Credit Suisse intends to hold on to its bonus payments, Treasury Secretary Karin Keller-Sutter (59) issued a strong word on Tuesday: no bonuses to CS managers.
On one point, all parties are astonishingly united: a culture change is needed at the financial institutions. “Not like that anymore!” is the rallying cry of the Social Democrats. And on Twitter, FDP leader Thierry Burkart (47) demanded “no bonuses be paid”.

Ruedi Noser (61), member of the Board of Directors of Credit Suisse Asset Management AG, also thinks it is right that bonuses of millions are no longer paid. The Zurich FDP Council of States limits Sunday’s position: “But the fact that all employees with a wage of more than 250,000 francs – including variable wage components – have their bonuses lapsed is a wrong decision that must be corrected.”

Noser protects CS employees

Bank employees with great responsibility and important customer contacts often receive a bonus of up to an annual salary for meeting their goals, part of which is in the form of shares, which the recipients are not allowed to sell for three years.

Noser wants to make a case, especially for CS employees who have done a “good job” to the end and must now be punished. “Those who caused the debacle and were smart enough to jump off early will be rewarded. That’s perverse!”

A spokeswoman for the bank did not answer the question of which CS employees were affected by bonus cancellations: “No comment.” There is also no comment on the CHF 250,000 mentioned by Noser. The CS only refers to a press release from the finance department. It says: “It is important to avoid hitting employees who did not cause the crisis themselves.”

Everyone laughs, everyone wants the bonus

According to the Swiss Bank Staff Association, the uncertainty is extremely stressful for the employees: “A storm is coming, but no one knows if they will be affected by it.” The bonus is a fixed part of the salary for normal employees and replaces the 13th monthly salary that is customary in other sectors. “The bank must fulfill its obligations to these employees and pay the promised bonuses.” This does not apply to the management team: “The Banking Act provides for measures that the financial department has now also ordered.”

That bonuses would have a negative effect is obvious, says a former CS banker to SonntagsBlick. If you want to achieve your goals by any means, you are willing to take greater risks. “For the bank, this can be extremely dangerous.”

The “circus” always starts in the fall, says the banker. “Then the bankers put a smile on their lips.” Everyone wanted to make a good impression on the boss – because the envelope with the bonus would come soon. “Some use it to pay taxes or their holiday home in the mountains, others rush straight to Bahnhofstrasse and buy a new Rolex for 35,000 francs.”

“Collective Irresponsibility”

One of those fighting this Wall Street groove is Green National Councilor Gerhard Andrey (47). He argues for a viable financial market that is based on the real economy and has a positive effect on people and the environment: “The rest belongs in the casino for the wealthy, where they gamble with fantasy products.”

In mid-April, parliament will hold a special session on the demise of Credit Suisse. The subjects there: regulations, urgent law, bonus culture. Also, the question of who is actually responsible for the whole mess needs to be clarified. Gerhard Andrey: “It’s now about building a financial market that doesn’t explode in our faces every ten years.”

According to the entrepreneur from Freiburg, what has been done so far is unacceptable: “There was collective irresponsibility.” Stimulation systems are not set in stone. “Other industries manage without exorbitant bonuses – and work perfectly.” In the future, there should be no more monetary stimulus systems that encourage dangerous risk. The demise of CS shows, “This system survived.”

Source:Blick