Federal Council scraps bonuses for CS executives

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Two weeks ago, the government temporarily suspended the deferred variable remuneration at CS. Now it is definitely clear what should be done with these bonuses.

The outstanding bonuses of Credit Suisse’s top management levels will be withdrawn (Executive Board) or reduced by 50 percent (second management level) or 25 percent (third management level). This affects about 1000 employees, spokesman for the Federal Council André Simonazzi (55) announced on the short message service Twitter.

This means that senior management’s responsibility for the situation at Credit Suisse is taken into account in a differentiated manner, the Federal Council said in a statement. Credit Suisse is also required to investigate the possibility of reclaiming variable remuneration already paid out and reporting it to Finma. The variable remuneration due in 2023 will also expire or be reduced pro rata until the acquisition is completed.

50 to 60 million francs variable remuneration

The total amount of deferred variable compensation at Credit Suisse for all employees today is CHF 635 million (at a share price of CHF 0.76).

According to the current state of knowledge, the measure taken by the Bundesrat will eliminate a total of about CHF 50 to 60 million in variable remuneration until the end of 2022. The discounts on the proportional variable remuneration for 2023 up to the takeover cannot yet be quantified.

Employees can take legal action against the decision

The Banking Act provides that the state government can impose bonus restrictions on systemically important banks if the state “provides direct or indirect state support from federal funds.”

Employees whose wages have now been withdrawn or reduced can, on the one hand, file their claims against the bank with the civil court and, on the other hand, appeal against the decision of the Federal Public Service Finance (FDF) with the Federal Administrative Court.

FDP welcomes bonus cuts

For the FDP it is correct that the bonuses of the current top of CS should be reduced. The FDP also supports the fact that those responsible for their “mismanagement” should be held accountable and bonuses received should be refunded.

In a tweet on Wednesday following announcements by the Federal Council, the FDP also wrote that they expect UBS to “use taxpayers’ money responsibly.”

(oco/SDA)

Source:Blick