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Swiss finance ministry to challenge Credit Suisse bonus ruling

Department of Finance appeals judgement on CS bonuses to the Federal Supreme Court
Department of Finance appeals judgement on CS bonuses to the Federal Supreme Court Keystone-SDA

The Swiss finance ministry intends to appeal a verdict of the Federal Administrative Court to allow bonuses to be paid to former Credit Suisse bosses.

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The finance ministry had instructed Credit Suisse, which was forced to merge with UBS in 2023, to reduce and in some cases even cancel the variable remuneration of some of the top three management levels.

+ Where did it all go wrong for Credit Suisse?

Several of those affected challenged this before the Federal Administrative Court. The court ruled that the government’s actions were unlawful. The reduced bonuses were bindingly guaranteed claims by the employer arising from an employment contract. Such claims are protected by the guarantee of ownership.

The Federal Administrative Court argued, among other things, that a clear and explicit basis in a law is necessary for serious interference with such claims. The finance minbistry, on the other hand, is of the opinion that the court failed to take key aspects into account when interpreting the legal basis.

In particular, the extraordinary circumstances of the takeover of Credit Suisse by UBS, which could not have been foreseen by the legislator, were not taken into account.

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Adapted from German by DeepL/mga

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