Decision on salary cap and bonuses put off

The Senate has delayed a decision on controversial proposals for capping salaries and ending bonus payments at the leading bank UBS.

The bank, which has benefited from a bail-out package by the government, made a loss of SFr21 billion ($19.4 billion) last year.

Senators on Wednesday agreed to examine the proposals in detail, before resuming debate on the issue at a later stage.

Supporters of salary restrictions, mainly from the centre-left, argued it was time to send a clear signal to stop perceived excesses in the finance industry.

For their part, opponents said the banking sector, including the regulatory authorities, had taken steps in the right direction and too much state interference would harm the competitive edge of the financial institutions.

In March the other parliamentary chamber, the House of Representatives, approved upper salary limits for the bank’s top management.

The centre-left Social Democratic Party has accused the Senate of dragging its feet and announced it would increase efforts to force a nationwide vote on salary caps for managers.

In a related development, the UBS board and top management have defended planned salary increases in its investment unit in a bid to remain competitive in an international market.

The move prompted an outcry among politicians and in the media over the past few weeks.

Urs Geiser, swissinfo.ch