Former CS executives do not have to pay back their bonuses
Published: Sunday, Apr 14th 2024, 10:00
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The former managers of the defunct major bank Credit Suisse (CS) will be allowed to keep their bonuses. Given the current legal situation, a clawback is unlikely to be successful, the Department of Finance told the Keystone-SDA news agency on Sunday.
It thus confirmed a report in the Sonntagszeitung newspaper. The Federal Council came to this conclusion in its report on banking stability. In it, the Federal Department of Finance (FDF) also announced that it had drawn up an overview of the legal means available to retroactively bring those responsible for a bank's poor performance to justice.
The Federal Council therefore now sees a need for action on the legal basis: "In particular, instruments should be created that will allow bank managers in similar cases to be retroactively stripped of bonuses that have already been paid out. With the introduction of a senior manager regime, these should also be clearly identifiable," wrote the EDF.
No ban on bonuses
However, a bonus limit or a ban on bonuses is not an issue for the Federal Council, as it announced last Wednesday. In his view, such an instrument would "not be expedient". Studies have observed higher fixed salaries as a side effect. However, according to the Federal Council, bonuses should be linked to criteria of long-term economic success and should also be subject to blocking periods.
In the 339-page report on banking stability published on Wednesday, the Federal Council concluded that "many of the national and international measures already introduced to increase financial stability have basically proven their worth".
More competence for Finma
However, the analysis also revealed gaps in the existing system and therefore a need for action to further develop and strengthen banking regulation, according to the Federal Council. It intends to address these with a package of 22 measures. The package of measures is divided into three main thrusts: Firstly, the Federal Council wants to improve prevention, secondly to strengthen liquidity and thirdly to expand the range of crisis instruments.
Specifically, he proposed extended powers for the Swiss Financial Market Supervisory Authority (FINMA) - for example, clear responsibilities for managers. Finma's authority to impose fines is also being examined.
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