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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.
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.
With these measures, a total of CHF 50 to 60 million will be withdrawn from the affected employees.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.
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.
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
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
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