Banks: Bonus cuts for Credit Suisse managers were legal
The highest Swiss court classifies the reduction in variable remuneration after the state-supported takeover by UBS as legal.
Quick Look
The Swiss Federal Court has declared the cancellation of bonuses for former Credit Suisse executives following the state-backed takeover by UBS to be legal, overturning an earlier ruling.
AI-generated summary
Why It Matters
Credit Suisse was taken over by UBS in March 2023 as part of a state-backed emergency rescue. The FDF then ordered the cancellation of bonuses for executives.
Zurich. The Swiss Federal Court has confirmed the federal government's cancellation of bonuses for former executives of the collapsed major bank Credit Suisse (CS) as legal.
The highest Swiss court upheld the complaints of the Confederation and UBS, as the court in Lausanne announced. The judges thereby overturned a ruling by the Federal Administrative Court from 2025, which had proven the CS managers right.
The Federal Court has now declared that Swiss banking law provides a sufficient legal basis for the intervention. Accordingly, variable remuneration may be reduced or eliminated if a systemically important bank receives state aid.
Credit Suisse got into a serious crisis in March 2023 and was taken over by its competitor UBS in a state-supported rescue operation. The Federal Department of Finance (EFD) then ordered the bonuses for the top three management levels of the CS to be canceled in whole or in part.
Open Questions
- What is the total amount of bonuses canceled?
