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Swiss government cancels Credit Suisse bonuses

Credit Suisse shareholder meeting
Credit Suisse managers' pockets will have to take the consequences of the bank's demise. © Keystone / Michael Buholzer

The Swiss government has instructed Credit Suisse bank, subject of an emergency takeover by UBS, to cancel or reduce by up to 50% all outstanding variable remuneration for the top three levels of its management.

The bank must also examine whether variable remuneration already paid out can be recovered and report to authorities on the matter, according to a government press releaseExternal link on Wednesday.

On March 19, the cabinet approved a package of measures to support the UBS takeover of Credit Suisse to avoid its collapse and knock-on effects in the financial markets. This includes government guarantees. “Article 10a of the Banking Act stipulates that the Federal Council shall impose remuneration-related measures if a systemically important bank is directly or indirectly granted state aid from federal funds”, notes the press release. 

Following a temporary suspension of deferred variable remuneration on 21 March 2023, the government has now decided on definitive measures, it says.

At its last Annual General Meeting on Tuesday, Credit Suisse shareholders expressed frustration at the bank’s impending demise and voted down a proposed pay package for managers.

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