Categories: Politics

The federal government is taking action on the CS bonuses

class=”sc-29f61514-0 kHgAwW”>

1/5
Karin Keller-Sutter’s finance department is requiring UBS and CS to partially withdraw or adjust their bonuses.

What happens to the currently outstanding Credit Suisse boardroom bonuses? They are shortened. At least that of management.

Those at the first management level are cut by 50 percent, those at the second management level by 25 percent. This was announced by the Bundesrat a few weeks ago. But now the financial department (EFD) of Karin Keller-Sutter (59) has implemented the announced bonus measures for the major banks Credit Suisse and UBS by decree.

The bonuses already paid are also the focus

This means that the responsibility of top management for the situation at Credit Suisse is taken into account in a differentiated way. The bonuses due in 2023 for these management levels will also expire and will be reduced pro rata until the acquisition is completed.

Credit Suisse is also required to investigate the possibility of reclaiming and reporting variable remuneration already paid to members of the Executive Board since 2019 to the FDF and the Netherlands Authority for the Financial Markets (Finma).

Before these measures were finally ordered, those involved were given the right to be heard. According to previous Confederation statements, the rulings can be challenged in the Federal Administrative Court. However, as the FDF writes in its communication, the employees are not a party to the summary proceedings. The order is aimed exclusively at CS.

50 to 60 million francs variable remuneration

With these measures, a total of CHF 50 to 60 million will be withdrawn from the affected employees. Due to the negative share price development of Credit Suisse, all 49,000 employees with variable remuneration have already had to accept a total loss of more than two billion francs.

Advertisement

The Bundesrat announced at the beginning of May that a general ban on bonuses for all employees could have sent a political signal. From the government’s point of view, however, this move would also carry risks: it could have led to unwanted operational destabilization by further increasing pressure on high-performing companies to leave.

UBS also affected

According to the FDF, UBS is also required to follow additional rules. For example, it must design its compensation system for people primarily responsible for the sale of Credit Suisse assets covered by the federal guarantee to provide an incentive to make the sale with as little loss as possible. The goal is that the federal guarantee is not claimed if possible.

In addition, the Federal Council wants to oblige UBS to continue to adequately weigh factors such as risk awareness and compliance with rules of conduct in its remuneration system. Appropriate specifications ensure that UBS’s compensation system is not changed in a way that rewards unnecessary risk-taking. (she)

Source:Blick

Share
Published by
Livingstone

Recent Posts

Terror suspect Chechen ‘hanged himself’ in Russian custody Egyptian President al-Sisi has been sworn in for a third term

On the same day of the terrorist attack on the Krokus City Hall in Moscow,…

1 year ago

Locals demand tourist tax for Tenerife: “Like a cancer consuming the island”

class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…

1 year ago

Agreement reached: this is how much Tuchel will receive for his departure from Bayern

class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…

1 year ago

Worst earthquake in 25 years in Taiwan +++ Number of deaths increased Is Russia running out of tanks? Now ‘Chinese coffins’ are used

At least seven people have been killed and 57 injured in severe earthquakes in the…

1 year ago

Now the moon should also have its own time (and its own clocks). These 11 photos and videos show just how intense the Taiwan earthquake was

The American space agency NASA would establish a uniform lunar time on behalf of the…

1 year ago

This is how the Swiss experienced the earthquake in Taiwan: “I saw a crack in the wall”

class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…

1 year ago