Bonuses cuts of ex- Credit Suisse bosses ruled unlawful

Bonuses of former Credit Suisse managers may not be reduced Keystone-SDA

The reduction and blocking of bonuses at Credit Suisse by the Swiss finance ministry has been ruled unlawful by the Federal Administrative Court.

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The finance ministry ordered bonuses to be slashed for the top three management levels at Credit Suisse after the bank was forced into an emergency buyout by UBS in 2023.

But the Federal Administrative Court has upheld the joint appeal of 12 former Credit Suisse executives.

The affected bonuses were bindingly guaranteed claims arising from an employment contract, the court said. Such claims are protected by the guarantee of ownership.

+ Where did it all go wrong for Credit Suisse?

This was stated by the Federal Administrative Court in a judgement published on Wednesday. The guarantee of ownership is guaranteed in the constitution. The legal basis required for a serious encroachment on such claims is lacking.

The Banking Act does not contain such a basis. The law only provides that measures are possible for the duration of the state aid claimed.

All state aid to the bank had ended by August 11, 2023 at the latest. However, the finance ministry ordered the bonuses to be reduced definitively and thus beyond the duration of the state aid.

Translated from German by DeepL/mga

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