Swiss Senate Moves to Limit Bankers' Annual Compensation

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Late on Monday, the Swiss upper house of parliament narrowly approved a proposal to cap bankers' total annual compensation at between 3 and 5 million Swiss francs ($3.4-5.7 million), a figure far below what top earners currently make.

The motion passed with 21 votes in favor and 19 against, and it now moves to the lower house of parliament. If the proposal clears the lower house, Switzerland's Federal Council will be tasked with drafting an amendment to change the law. The council had previously rejected this proposal in 2023.

Once the amendment is drafted, it will return to parliament, which is considering several measures to make the banking sector less risky.

The issue of executive pay has gained more attention in Switzerland following the collapse of Credit Suisse, which tarnished the country's reputation for banking stability and business excellence. After a state-backed rescue, Credit Suisse was acquired by UBS, whose CEO, Sergio Ermotti, earned 14.4 million Swiss francs in 2023.

Swiss Finance Minister Karin Keller-Sutter has raised concerns about the high pay, specifically naming Ermotti.

Paraphrasing text from "Reuters" all rights reserved by the original author