Switzerland's top court upholds Credit Suisse bonus cuts

ZURICH, Oct 15 (Reuters) - Switzerland's highest court on Thursday said it had upheld cuts and cancellations of bonuses for the top three management levels of Credit Suisse following the Swiss bank's collapse, confirming the legality of the measure ordered by the finance ministry.

The Swiss Supreme Court overturned a previous ruling by the Federal Administrative Court, concluding that Swiss banking law provides sufficient legal basis for the bonus cuts.

• Credit Suisse was acquired by competitor UBS in a state-engineered emergency takeover in March 2023

• The finance ministry subsequently ordered the full or partial cancellation of accrued and future bonuses for senior staff across the entire bank, a measure that affected around 1,000 people

• Some of the affected Credit Suisse managers challenged the measure at the Federal Administrative Court, which ruled in 2025 the bonus cuts had been unlawful

• The Swiss government and UBS appealed, after which the Supreme Court upheld the bonus cuts in a ruling dated September 16

• Bonuses should not be financed with public funds for business periods during which the need for state aid was created, the Supreme Court said in a statement

(Reporting by Ariane LuthiEditing by Dave Graham)