Credit Suisse Bankers Lose Final Bid to Win Back Bonuses at Swiss Top Court
The ruling affects as many as 1,000 former employees and says taxpayer-backed rescue funds cannot be used for banker payouts.
- The Swiss Supreme Court ruled on Thursday that former Credit Suisse bankers cannot reclaim bonuses cancelled during the 2023 UBS Group acquisition, overturning a lower court decision affecting as many as 1,000 ex-employees.
- When UBS acquired Credit Suisse in March 2023, Switzerland provided a liquidity backstop of up to $121 billion, prompting the Swiss finance ministry to order bonus cuts altogether for executives, 50% for managers, and 25% for other staff.
- Judges stated that using taxpayer-backed funds to pay banker bonuses would be unlawful, citing public interest in preventing excessive compensation; the cancellation applies to bonuses guaranteed by end of 2022 but unpaid as of March 21, 2023.
- Concluding the legal battle for former staff seeking withheld variable compensation, the verdict cannot be appealed, and UBS stated it "takes note of the decision" regarding the final ruling.
- Paying even deferred bonuses would indirectly allow recipients to benefit from state aid, creating "perverse incentives," the Supreme Court warned, confirming the original authority to scrap the payouts.
14 Articles
14 Articles
After the acquisition by UBS, bonuses for the top management levels of Grossbank Credit Suisse were cancelled. The Swiss Federal Court now confirms the decision.
Credit Suisse Bankers Lose Final Bid to Win Back Bonuses at Swiss Top Court
Credit Suisse bankers stripped of their bonuses when UBS Group AG bought its collapsing rival won’t get their money back, Switzerland’s top court ruled, overturning a decision that could have benefited as many as 1,000 ex-employees.
The Federal Court has granted a complaint from the Federal Government and UBS.
Former senior managers lost an average of 68,000 francs of bonuses for an average annual remuneration of 1.4 million. The measure was intended to prevent 168 billion public aid from being used to finance inappropriate bonusesThe removal of bonuses paid to former senior management of Credit Suisse was legal. In a judgment published on Thursday, the Federal Court accepted an appeal filed by the Confederation and UBS and annulled a judgment of the …
Switzerland and UBS bank can breathe a sigh of relief, according to the Supreme Court, Swiss bankers working at the bankrupt Credit Suisse were legally deprived of their bonuses.
Coverage Details
Bias Distribution
- 40% of the sources lean Left, 40% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
