Bonus Freeze: Credit Suisse Staff Left In The Cold By Swiss Government

The Federal Council, the executive body of the Swiss federal government, said in a statement it has acknowledged that the Federal Department of Finance (FDF) is temporarily suspending certain forms of variable remuneration for Credit Suisse Group AG CS employees.

The Federal Council said the measure pertains to already granted but deferred remuneration for the financial years up to 2022. The Council has also instructed the FDF to propose further measures on variable remuneration for the financial years up to 2022 and thereafter.

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Recruiters around the world are getting an unprecedented flood of calls from Credit Suisse employees looking to switch jobs as the Swiss lender is set to be taken over by rival UBS Group AG UBS, said a Bloomberg report.

Credit Suisse's Executive Board has also decided to waive its variable remuneration for the 2022 financial year and the decision has been acknowledged by the Federal Council.

Price Action: NYSE-listed shares of Credit Suisse closed 2.46% higher while UBS shares ended Tuesday's session 11.88% higher.

The Swiss government also indicated that for reasons of legal certainty, the Federal Council is refraining from retroactively prohibiting already granted and immediately payable variable remuneration for Credit Suisse employees for the 2022 financial year.

"The aim of this is also to avoid impacting employees who did not themselves cause the crisis," it said.

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