Swiss court upholds cuts to former Credit Suisse executives’ bonuses
Thursday 15th October 2026 on 12:01 in
Switzerland
Switzerland’s Federal Supreme Court has ruled that the government was entitled to cut or cancel unpaid bonuses for former Credit Suisse executives, overturning an earlier decision by the Federal Administrative Court, SRF reported.
The ruling affects bonuses owed to about 1,000 people across the bank’s three highest management levels. After UBS took over Credit Suisse with state support in spring 2023, the Federal Department of Finance cancelled bonuses for the bank’s former executive board and cut those for the next two management tiers by 50% and 25%, respectively.
Several managers challenged the cuts, and the Federal Administrative Court ruled in their favour in 2025. It said the bonuses were contractually guaranteed and that a particularly clear legal basis was needed to interfere with those claims. The court found no such basis.
The Federal Supreme Court said the Banking Act expressly allows the government to impose measures affecting compensation when a systemically important bank receives state support. Those measures can include partially or fully cancelling bonuses that have not yet been paid, it said.
The law is intended to prevent state support from being used, directly or indirectly, to finance bonuses. The court said that condition was met because the government provided a guarantee of up to 100 billion francs as part of the rescue of Credit Suisse.
The court added that the cuts were preventive, not punitive. The government did not have to prove that individual managers were responsible for the crisis.
Government plans tighter bank rules
The ruling does not end the debate over managers’ responsibility. The Federal Council has proposed stricter rules for large banks, including requiring them to document which executives are responsible for particular decisions. It has also proposed tighter bonus rules, such as delaying some variable pay and allowing banks in some cases to reclaim bonuses already paid after misconduct or mismanagement.
The proposals are under consultation and must still be considered by Parliament.