Switzerland tightens bonus rules for banks after Credit Suisse collapse

The proposed framework mandates that a significant portion of variable compensation for top earners be deferred for several years. Should misconduct or financial losses occur during this period, banks must be prepared to reduce or cancel outstanding payments. In cases of proven wrongdoing, the government aims to empower institutions to claw back bonuses already paid out to executives.

Beyond compensation, the reforms expand the mandate of the financial regulator, FINMA. The agency will gain authority to intervene earlier when emerging risks are detected and will have the power to impose direct fines on institutions. Furthermore, banks with at least 250 employees will face stricter requirements to assign clear responsibility for key decisions to senior managers. These measures complement ongoing parliamentary debates regarding higher capital requirements for UBS, the nation’s sole remaining global bank. The consultation process for these rules remains open until November 19, 2026.