According to a statement posted on the Federal Council website, Switzerland will reduce bonuses given to top Credit Suisse and UBS employees by 50% or even cancel them due to state assistance these banks received.
“Through the end of 2022, all variable compensation for Credit Suisse’s senior management (executive board) pay will be eliminated, and compensation for the first executive board’s subordinate executive board and the second executive board’s subordinate executive board will be reduced by 50% and 25%, respectively,” the document stated.
For its part, UBS will be required to include a criterion pertaining to the effective realization, or getting the greatest profit possible, of assets of Credit Suisse that are subject to the state guarantee against losses in its compensation system, in addition to risk awareness criteria.
source: reuters.com
