Swiss Banker Bonus Cap Proposal Watered Down in Parliament

(Bloomberg) – Swiss deputies diluted a proposal to establish a fixed upper border for compensation for the largest banks of the country, including the UBS Group AG.

In March, the Supreme Assembly of the Parliament voted for the bill to limit the salaries of senior executives in Swiss banks between 3 million and 5 million francs a year. According to a statement from the parliament, this bill was changed in the Lower Parliament. This is low likely to be a law of the cover.

The executive compensation has become a warm button problem for Swiss politicians in recent years after the death of Credit Suisse. Finance Minister Karin Keller-Sutter had previously criticized the compensation of UBS Executive Officer Sergio Ermotti.

According to a report by Proxy Advisor Ethos, the General Managers in Swiss -listed companies have seen significant wage increases since Covid Pandememi.

The CEOs in SMI companies said it earned an average of 8.3 million francs in 2024 and increased by 7.4% compared to the previous year.

In the plan to limit the salaries of the bank, the Economy and Taxation Committee of the Lower Assembly lifted a fixed upper limit from the text of the invoice. Instead, the text is no longer just “if the business does not perform well, the variable should not be paid”.

The decision of the Committee means that the bill will only vote for the softened version unless a counter -application is initiated when the bill comes before the entire room. Voting in parliament may come early until the next month.

The Swiss Movement is a wider driving force in the region among the fields of judicial areas that are not part of the European Union. In 2023, England seized a Bank’s bank’s base fee to a maximum of times. The Wall Street banks welcomed the movement, saying that the City of London would help the City of London as a financial center and that the average firms of the average banks could better align the salary structure of the best bankers with the bonus heavy packages of New York.

In 2014, the UK Bonus Cap was introduced by the EU in response to the public attack on the financial crisis. For most lenders, border, investment bankers, traders, risk managers and even harmony personnel meant that the fixed salaries of material risk areas may be equal to equal variable compensation.

(Updates with the Ethos Report, the background in the UK from the fourth paragraph.)

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