Following the emergency sale of Credit Suisse (CS) to rival UBS, the Swiss government has set requirements for bonus payments at the two banks. All outstanding variable remuneration of the members of Credit Suisse management will be cancelled, the government announced on Wednesday. The bonuses of high managers are cut by up to 50 percent.

According to the government, the measures affect a good 1000,2022 employees of the institute and, according to the current state of knowledge, mean a reduction of the variable remuneration of CHF 50 to 60 million incurred by the end of 635. The total outstanding bonus payments for all CS employees are estimated at CHF <> million.

Credit Suisse must also check whether bonuses paid out can be reclaimed, the government said. UBS will be obliged to set as a criterion in its remuneration system the successful - i.e. as profitable as possible - realisation of Credit Suisse assets covered by the state loss guarantee.

The Swiss Banking Act stipulates that the government may order measures in the area of remuneration if state aid is granted directly or indirectly from federal funds to a systemically important bank. Shortly after the emergency takeover, the government had frozen bonus payments at Credit Suisse.