Switzerland curbs bonus payouts at Credit Suisse

The move will penalise bankers after a multi-billion-franc state rescue of the 167-year-old bank

Swiss authorities imposed curbs on bonus payments at Credit Suisse, a move that will penalise bankers after a multi-billion-franc state rescue of the bank.

Switzerland's government announced on Tuesday that Credit Suisse was ordered to "temporarily" suspend "already granted but deferred variable remuneration" for years up to 2022.

Some in the Swiss public have been outraged by bonus payments at the bank on the back of a merger backed by roughly 260 billion Swiss francs ($280 billion) of state funding and guarantees.

Bank employee groups have also been angered by potential job losses, demanding special protection.

"It has to be read as recognition that major mistakes have been made at Credit Suisse and it would be so inappropriate if the board received any variable compensation at this time," said Clive Howard, employment law partner at Keystone Law.

Credit Suisse's executive board took home 32.2 million Swiss francs in fixed compensation last year but collectively went without a bonus for the first time in more than 15 years.

The Swiss government also instructed its finance ministry to propose further measures on variable remuneration for Credit Suisse. Credit Suisse declined to comment.