Switzerland cuts bonus payouts for top Credit Suisse management

Switzerland has instructed Credit Suisse (CSGN.S) to cancel or reduce all outstanding bonus payments for the top three levels of management and examine whether those already paid can be recovered, the Federal Council said on Wednesday.

Under Swiss banking law, the Federal Council can impose bonus-related measures on a systemically important bank if it received state aid from federal funds, according to a statement.

The highly unusual government move comes after a public backlash against bonus payments at the bank, which was forced into a merger with rival UBS (UBSG.S) and had to be rescued with close to 260 billion Swiss francs ($280 billion) of state funding and guarantees.

The decision “will affect around 1,000 employees, who will be deprived of approximately 50-60 million Swiss francs with these measures,” the council said.

Bonus payments up to the end of 2022 will be cancelled for the Executive Board, and then halved for management one level below the board and reduced by 25% for those two levels below.

This report’s information was first seen on REUTERS; to read more, click this link.