In a narrow vote late Monday, the Swiss upper house of parliament approved a motion aimed at capping bankers’ total annual compensation between 3 and 5 million Swiss francs ($3.4-$5.7 million). This amount is considerably lower than the earnings of the highest-paid bankers in the country today.
The proposal, which follows the collapse of Credit Suisse in 2023, was passed by 21 votes to 19. It will now move to the lower house of parliament for further consideration.
Should the lower house approve the motion, Switzerland’s Federal Council will be tasked with drafting a law amendment. The Federal Council had rejected the motion last year. Once an amendment is prepared, it will return to parliament as part of broader efforts to reform the banking sector and reduce financial risks.
The issue of executive pay has gained prominence in Switzerland following the fall of Credit Suisse, a development that tarnished the nation’s image as a global banking hub. Credit Suisse was ultimately rescued by the state and acquired by UBS. In 2023, UBS CEO Sergio Ermotti received a compensation package totaling 14.4 million Swiss francs.
Swiss Finance Minister Karin Keller-Sutter has since raised concerns over the high pay packages of some executives, including Ermotti, highlighting growing unease over executive remuneration in the wake of the banking crisis.
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