Switzerland has instructed Credit Suisse (CSGN.S) to cancel or reduce all outstanding bonus payments for the top three levels of management and examine whether those already paid can be recovered, the Federal Council said on Wednesday.
Under Swiss banking law, the Federal Council can impose bonus-related measures on a systemically important bank if it received state aid from federal funds, according to a statement.
The highly unusual government move comes after a public backlash against bonus payments at the bank, which was forced into a merger with rival UBS (UBSG.S) and had to be rescued with close to 260 billion Swiss francs ($280 billion) of state funding and guarantees.
Source : Switzerland Lowers Bonus Payouts for Credit Suisse’s Senior Management