Despite the takeover by UBS: Credit Suisse wants to pay out bonuses
The CreditSuisse has assured its employees that promised bonuses and wage increases will continue to be paid. After the emergency takeover of the bank by its rival UBS, the institute tries to maintain normal business operations. There will be no changes to the salary regulations and the bonuses are to be paid out as planned on March 24, Credit Suisse said in an internal memo to employees.
The bonuses have already been paid out in many countries. The bank does not expect any changes for the other countries, it said. A bank spokeswoman confirmed the content of the message. UBS is acquiring Credit Suisse in a historic government-engineered deal designed to stem the spreading crisis of confidence in global financial markets. The largest Swiss bank paid three billion Swiss francs in its own shares for its lurching competitor and thus significantly less than half of Friday’s closing price.
The bank is aware of the enormous uncertainty and stress caused by the events of the past 48 hours, according to a separate statement from Chairman of the Board of Directors Axel Lehmann and CEO Ulrich Körner. Work is underway to determine which positions will be eliminated as part of the takeover. The bank aims to continue to pay standard market severance payments. Changes in cash bonuses are not expected and the cash component of the announced “transformation bonus” should also be paid out. The merger is expected to be completed by the end of 2023, according to Credit Suisse. Until then, the bank will operate as closely as possible to “business as usual” and concentrate on looking after its customers, it said.