Swiss Government Takes CS Case to Supreme Court
The Federal Department of Finance (FDF) is not backing down and is appealing the ruling of the Federal Administrative Court, which declared the reduction and elimination of variable remuneration for former members of Credit Suisse management to be unlawful.
The Federal Department of Finance (FDF) will appeal the decision of the Federal Administrative Court, which ruled that the reduction and elimination of variable remuneration for former Credit Suisse executives was unlawful.
According to an announcement on Friday, the FDF decided to submit an appeal to the Federal Supreme Court, which will make the final decision on the case.
In the course of the takeover of Credit Suisse by UBS, the FDF had to order measures in the area of remuneration based on the Banking Act. In this context, it instructed Credit Suisse to reduce and in some cases even cancel the variable remuneration paid to some of the top management levels.
Essential Aspects not Taken into Account?
In a recent ruling, the FAC has now upheld the appeal of several members of management and deemed the definitive reduction or elimination of variable remuneration ordered by the FDF to be unlawful and annulled it.
The FDF has decided to appeal the decision of the FAC and to refer the case to the Federal Supreme Court, which will decide in the last instance. The FDF is of the opinion that the FAC failed to take key aspects into account when interpreting the legal basis, in particular by not considering the extraordinary circumstances of the takeover of Credit Suisse, which were unforeseeable for the legislator.
