Swiss Federal Court Upholds Ban on Credit Suisse Executives' Bonuses

The Swiss Federal Court delivered its final judgment, rejecting the lawsuit of twelve ex-Credit Suisse managers who sought payment of previously withheld bonuses. By siding with the Confederation and UBS, the court affirmed that the bonus reductions imposed after the 2023 state-aid intervention are lawful, leaving the funds frozen. This overturns a prior decision by the Federal Administrative Court that had labeled the cuts unlawful.

Peter V. Kunz, a law professor, called the ruling legally fragile because existing legislation does not explicitly authorize such measures. The Federal Finance Department, led by Karin Keller-Sutter, said the judgment aligns with its interpretation of the law. UBS, which acquired Credit Suisse, indicated it will not pay the contested amounts.