Credit Suisse Group AG has recently announced that it will maintain its regular operations, including the payment of promised bonuses and salary increases, following a tumultuous week that ended in a takeover by its fiercest Swiss competitor.
In an internal memo, Credit Suisse stated that payroll arrangements will remain unchanged, and bonuses will be paid as scheduled on March 24. The bank also confirmed that bonuses had already been paid in many countries, with no expected changes for remaining jurisdictions.
This announcement comes as UBS Group AG has 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 all-share deal includes extensive government guarantees and liquidity provisions, worth 3 billion francs ($3.3 billion).
Despite the uncertainty caused by the intense media coverage of Credit Suisse’s future, the Chairman and CEO expressed their commitment to the bank’s vision, urging employees to stay focused and dedicated to their roles.
The bank announced that it will analyze which positions could potentially be affected in the upcoming period and strive to provide severance packages in accordance with market standards. The bank affirmed that it does not expect any adjustments to be made to the upfront cash awards that have been previously agreed upon, and it will also pay the cash component of the “transformation award” as previously communicated. Any potential impact on the equity component will be confirmed at a later time.
The bank anticipates the merger to be finalized by the end of 2023, and in the meantime, it will continue to operate as normally as possible, prioritizing the provision of excellent service to its clients.
In conclusion, Credit Suisse’s decision to maintain regular operations and pay promised bonuses highlights the bank’s commitment to its employees and stability in these challenging times. With the UBS Group AG takeover, Credit Suisse can look to the future with optimism and continue to provide top-quality financial services to its customers.
