Variable remuneration at Credit Suisse: the Confederation appeals to the Federal Supreme Court
Bern, 23.05.2025 — The Federal Department of Finance is contesting the decision of the Federal Administrative Court (FAC), which found that the reduction or cancellation of variable remuneration for former members of Credit Suisse management was illegal. The FDF has decided to lodge an appeal with the Federal Supreme Court, which will make a final decision on the matter.
During UBS's takeover of Credit Suisse, the Federal Department of Finance (FDF), based on the Banking Act, imposed certain measures with regard to remuneration. In this connection, it instructed Credit Suisse to reduce variable remuneration payments to certain senior managers, or even cancel them in some cases.
The FAC upheld an appeal by a number of affected managers in a recent ruling, in which it found that the definitive reduction or cancellation ordered by the FDF was illegal, and repealed the order.
The FDF has decided to contest the FAC's ruling and refer the matter to the Federal Supreme Court, which will make a final decision. In the FDF's view, the FAC's interpretation of the legal basis failed to take key aspects into account, in particular by not considering the exceptional circumstances leading up to the takeover of Credit Suisse, which the legislator would not have been able to foresee.