The case

A recent ruling by the Swiss Federal Administrative Court has determined that the Federal Department of Finance (FDF) unlawfully reduced or canceled the variable remuneration of former Credit Suisse managers following the bank’s 2023 collapse and subsequent acquisition by UBS.

Source: Swiss Federal Administrative Court 

The commentary

The court’s decision, issued yesterday, supports the appeals of twelve affected individuals, emphasizing that their bonuses were legally binding contractual entitlements protected under the Swiss Constitution’s guarantee of ownership. The court found no legal basis for the FDF’s actions, as state aid to Credit Suisse had ceased by August 2023, and none of the appellants were top executives or shown to have contributed to the bank’s crisis through misconduct.

In response to the court’s ruling, the Swiss finance ministry is reviewing its options, including the possibility of appealing to the Federal Supreme Court.

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