Depriving former Credit Suisse executives of bonuses was illegal
Former bank executives will be able to keep their bonuses
Former Credit Suisse executives will not have to repay their bonuses. The Federal Administrative Court (FAC) has upheld their appeal against the Federal Department of Finance (FDF), it announced on Wednesday .
Following the loans granted by the Confederation to the bank in March 2023, the Federal Council, via the FDF, ordered Credit Suisse to reduce or eliminate bonuses for executives at the three highest levels of management. This decision was demanded at the time by all parties following the announcement of the bank's acquisition by UBS.
The DFF and UBS, which took over Credit Suisse, had argued that the reduction or elimination of bonuses was justified because the individuals concerned had been part of the bank's top three management levels and were therefore responsible for its strategy and its complete failure.
This decision by the Federal Administrative Court affected a thousand people at the Federal Court of Justice. Twelve of them decided to appeal to the Federal Administrative Court. The appeal was therefore accepted by the court, which deemed the Federal Administrative Court's order "unlawful." The bonuses reduced by the Federal Administrative Court "constituted claims guaranteed by the employer under an employment contract," the Federal Administrative Court explained. "However, these contractual claims are protected by the property rights enshrined in the Federal Constitution. Any serious infringement of such rights requires a clear and express legal basis," it stated.
Furthermore, neither the DFF nor UBS were able to demonstrate "that a single one of the twelve executives concerned, through their actions or omissions contrary to their obligations, had taken excessive risks and was therefore responsible for the financial situation of Credit Suisse," the FAC stressed.
His decision may be appealed to the Federal Court.
20 Minutes
