2023-05-23 15:01:48
Federal Department of Finance
Bern, 23.05.2023 – The Federal Department of Finance (FDF) has issued a decision ordering the abolition or reduction of the variable remuneration that Credit Suisse still has to pay to members of its highest management levels. At the same time, he asked UBS to review the remuneration system for the people responsible for realizing the assets of Credit Suisse which are covered by the guarantee of the Confederation. The system should indeed encourage these people to reduce losses as much as possible.
With these two decisions, the FDF implements the decision of the Federal Council of April 5, 2023 on compensation measures at Credit Suisse and UBS (see press release of April 5). Both banks have been heard.
The variable remuneration that Credit Suisse must still pay to the members of the three highest levels of leadership will either be eliminated (executive board), or reduced by 50% (first level of leadership subordinate to the executive board) or 25% (second management level subordinate to the executive board). These measures give proper consideration to the responsibility of the highest level executives in the current situation at Credit Suisse. The variable remuneration of these persons for 2023 will also be eliminated or reduced proportionally until the effective acquisition by UBS. In addition, Credit Suisse will have to examine the possibilities of requiring the restitution of variable remuneration already paid to members of the group management since 2019 and report the conclusions of these examinations to the FDF and the Swiss Financial Market Supervisory Authority.
Employees are not parties to the decision-making process as the decision is addressed solely to Credit Suisse. This replaces the superprovisional decision of March 21, 2023 and the subsequent FDF measures regarding remuneration at Credit Suisse.
The FDF also orders UBS to include in its remuneration system an additional criterion for the persons responsible for the realization of the assets of Credit Suisse which are covered by the guarantee of the Confederation. The objective is to encourage the persons concerned to reduce losses as much as possible when realizing these assets in order to avoid, if possible, recourse to the guarantee of the Confederation. Finally, UBS will have to integrate criteria such as risk awareness and compliance with rules of conduct into its remuneration system. This measure ensures that the system will not be changed in a way that rewards reckless risk-taking.
Address for sending questions
Communication DFF
+41 58 462 60 33
[email protected]
Auteur
Federal Finance Administration
1684856328
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