Swiss banks are the foot soldiers of government efforts to fight the crisis. Credit Suisse boss Thomas Gottstein is mulling a more personal sacrifice.
From his home-office set-up to the studios of Switzerland's main broadcaster: new Credit Suisse boss Thomas Gottstein told «SRF Eco» (in German) that Switzerland's second-largest lender granted 1.24 billion Swiss francs ($1.3 billion) in emergency loans to 7,800 small Swiss businesses.
While domestic lenders unfurl a Swiss government-backed bazooka to shore up the economy, Gottstein has his eye on costs: Credit Suisse wants to show solidarity with the victims of the crisis, he said. While it is too early to talk about bonuses for 2020, he signalled that potential measures would include lower variable compensation.
Holding to Juicy Payouts
His comments come one day after UBS CEO Sergio Ermotti pledged $1 million for those hit by the crisis in his native Ticino. The canton forms the Swiss-Italian border and is very close to some of the hardest-hit areas of Italy including Bergamo and Lombardy.
The generosity extends to shareholders: both major Swiss banks are holding fast to dividend plans despite urgings from their regulator to rein them in for a rainy day. Both UBS and Credit Suisse have halted share buyback programs.
