After the emergency sale of the Swiss credit (CS) made specifications for the bonus payments at the two banks to the rival UBS. All outstanding variable compensation for members of the Credit Suisse Executive Board will be canceled, the government announced on Wednesday. The bonuses of high managers are reduced by up to 50 percent.

According to the government, the measures affect a good 1,000 employees at the institute and, according to current information, mean a reduction in the variable remuneration of CHF 50 to 60 million (around EUR 50 to 60 million) due by the end of 2022. The total outstanding bonus payments for all CS employees are estimated at CHF 635 million.

Credit Suisse must also check whether bonuses that have already been paid out can be reclaimed, the government said. In its remuneration system, UBS is obliged to specify the successful – i.e. as profitable as possible – utilization of the Credit Suisse assets covered by the state loss guarantee as a criterion.

Troubled Credit Suisse fled to UBS in a government-orchestrated bailout in mid-March. The federal government and the Swiss National Bank (SNB) are supporting the rescue operation with liquidity aid and guarantees worth billions. The Swiss Banking Act provides that the government can order remuneration measures if a systemically important bank is granted direct or indirect state aid from federal funds. Shortly after the emergency takeover, the government froze bonus payments at Credit Suisse.