The government has said it will not retroactively ban “already awarded and immediately payable variable remuneration for employees relating to the 2022 financial year. The purpose of this is also to avoid having an impact on employees who have no responsibility for the crisis”
The Swiss government has decided to suspend, at least temporarily, some of the bonuses that should have been paid to Credit Suisse executives despite the bank’s collapse. The group was acquired by rival UBS for 3 billion francs (3 billion euros) but the Swiss government is also involved in the operation, willing to take on possible losses of up to 100 billion francs, a third of the country’s GDP. The Swiss Federal Council has explained that it intends make use of the banking law of the country which allows him to intervene on compensation in the event that “a systemically important bank receives direct or indirect state aid”. The government has stated that however, it will not retroactively prohibit “variable remuneration already granted and immediately payable to employees relating to financial year 2022. The purpose of this is also to avoid having an impact on employees who they have no responsibility for the crisis”.
Bern’s decision could intensify the exodus of managers from Credit Suisse. According to reports the Bloomberg agency “Headhunters” from all over the world are receiving an unprecedented wave of calls from Swiss bankers looking for new jobs.