It looks like the bonuses at Credit Suisse are gone for good

RockedBuzz
By RockedBuzz 1 Min Read

Several bankers are preparing a lawsuit against the Swiss regulatory authority, Finma, due to the cancellation of about 400 million dollars in deferred compensation for middle managers, the paper reported this week.

Credit Suisse itself appealed to the Swiss Federal Administrative Court to save the bonuses, but the Sankt Gallen court disclosed on Tuesday that the bank had withdrawn its appeal.

The case of the affected bonuses dates back to 2014, when the bank’s managing directors and director-level employees received a conditional capital allowance as part of their remuneration. The purpose of the unusual rewards was to “mimic” the AT1 bonds, which could have been converted into equity or written down to zero if the bank ran into trouble. This happened with the bonds this spring.

Separately from that case, the Swiss government also confirmed on Tuesday a plan to strip Credit Suisse’s 1,000 or so top bankers of their entire bonuses for 2022 and 2023.

Cover image: Getty Images

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