The Swiss government has banned Credit Suisse from paying out deferred bonuses before 2022 in a move that has fueled unrest from staff at the failed bank.
The federal finance ministry said on Tuesday it had imposed “remuneration-related measures” on Credit Suisse as a result of the use of taxpayer funds to facilitate a merger with rival UBS.
“This measure relates to remuneration that has been granted but deferred for the financial year until 2022, for example in the form of share awards,” the federal council, Switzerland’s executive body, said in an emailed statement.
The federal council also asked the finance ministry to come up with a plan to control payments to Credit Suisse staff for all future bonus gifts.
“We thought it couldn’t get any worse and just did it,” said one Credit Suisse banker. “Essentially, it looks like the government is helping UBS let go of the investment bank but cutting everyone’s pay.”
Another banker said: “I’m looking forward to it. We don’t know what’s going to happen next, but morale is down and it’s hard to predict.”
The bonus awarded for 2022 can be paid according to the existing bank plan, the federal council said, for “legal certainty” and “to avoid the influence of employees who did not cause the crisis”.
Credit Suisse has so far sought to reassure staff that all bonuses and financial rewards will be paid as planned.
According to Credit Suisse’s annual report, released last week, at the end of 2021, Credit Suisse bankers will owe SFr2.793bn ($3bn) in deferred compensation, based on Credit Suisse’s share price. By the end of 2022, SFr1.25bn in deferred compensation awards.