Credit Suisse, Switzerland’s second-largest bank, reported that the board of directors will not receive additional bonus payments for 2022. The figures previously circulating — amounts in the range of 50-60 million Swiss francs or roughly 66.3 million dollars in total — were clarified by government sources as not being paid to the directors for the year in question. The clarification underscores a deliberate pause on variable compensation at the highest level, aligning with broader actions to stabilize leadership compensation amid continuing corporate restructuring.
The bank’s leadership announcement made clear that unpaid variable compensation for senior executives on the Executive Board would be fully waived by the end of 2022. For management earning one tier below the Board, the variable pay was reduced by half, and for those two levels below, the reduction stood at 25%. In practical terms, these measures affect about 1,000 employees and translate into a total omission of roughly 50-60 million Swiss francs in potential payout. The purpose, according to the Executive Board, is to reflect the changed financial and strategic environment following the merger and the resulting efforts to align incentives with long-term stability and shareholder value.
Alongside this stance on executive compensation, the bank has highlighted the broader impact of its merger with UBS on its employee base and share value. The combination of the two institutions, aimed at fortifying Swiss banking strength, has coincided with a noticeable decline in Credit Suisse’s equity value and market capitalization. Government communications indicate that employees experienced substantial losses tied to the decline in share price, with the official figure describing losses that exceed 2 billion Swiss francs in aggregate net value from the time before the merger to the current level of capitalization.
The total amount of deferred variable pay for the bank’s roughly 49,000 employees is reported at 635 million Swiss francs. This figure reflects the cumulative value of deferred incentives that were issued to staff during earlier years when the bank’s performance and share price were higher. The narrative notes that the initial allocation of these awards totaled 2.76 billion francs, meaning that employees, through the combined effects of market performance and the merger, have faced a documented erosion of more than 2 billion francs in expected compensation tied to share value fluctuations. The emphasis here is on the alignment between compensation commitments and the evolving financial realities of the merged banking group.
In late reports, Bloomberg cited sources noting that UBS, now the principal consolidator in the Swiss banking landscape, was moving toward a formal agreement to acquire Credit Suisse. The plan, described as a strategic move to consolidate the country’s strongest financial institutions, was explained as being developed by senior leaders, including a former UBS board chair and the current chair, with consensus on the timing and terms. This reporting reflects ongoing negotiations and the cross-institutional oversight that accompanies a major national banking consolidation, a development closely watched by regulators, investors, employees, and the public. The described leadership dynamics underscore how governance and strategic planning are shaping the succession and integration process as Credit Suisse transitions into a larger, merged entity under UBS’s umbrella.