Credit Suisse Group AG told staff that promised bonuses and pay increases will still be paid as the bank seeks to keep “business as usual” after a tumultuous week that ended in a takeover by its fiercest Swiss rival. There will be no changes to payroll arrangements and bonuses will still be paid on March 24, Credit Suisse said in an internal memo to staff. In many countries, bonuses have already been paid, and the bank doesn’t expect any changes for remaining jurisdictions, according to the memo. A spokeswoman confirmed the contents of the memo.
UBS Group AG over the weekend agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets. The Swiss bank is paying 3 billion francs ($3.3 billion) for its rival in an all-share deal that includes extensive government guarantees and liquidity provisions.
“We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused,” Chairman Axel Lehmann and Chief Executive Officer Ulrich Koerner said in a separate memo. The lender said that it will work throughout the coming period to identify which roles might be impacted, and “will aim to continue to provide severance in line with market practice.”
The bank also said it doesn’t anticipate any changes to any agreed on upfront cash awards and will also pay the cash component of the “transformation award” that had been communicated earlier. It will confirm any impact on the equity component. “We expect the merger is expected to close by the end of 2023 and until such time we will continue to operate as close as possible to ‘business as usual,’ focused on serving our clients,” the lender said.