Landmark Victory for Nater Dallafior Clients: Federal Department of Finance exceeded its authority in cancelling Credit Suisse bonuses

Nater Dallafior clients, a group of a dozen former Credit Suisse managers, represented by a team led by partner Mladen Stojiljković and including counsel Zoe De Santis and associate David Ehlebracht, secured a major victory in the Federal Administrative Court (“Court”).

 On 23 May 2023, the Federal Department of Finance (FDF) had issued an order cancelling or reducing the outstanding variable remuneration of the top three levels of management at Credit Suisse. The order affected around 1,000 employees who were deprived of payments of approximately CHF 50–60 million in variable remuneration accrued up to the end of 2022. The FDF justified the cancellation with the need to hold accountable those it believed were responsible for Credit Suisse’s collapse.

 Nater Dallafior appealed the FDF’s order on behalf of over a dozen Credit Suisse managers, challenging the order’s constitutionality. The appeal was selected by the Court as "pilot case" on the issue. On 31 March 2025, the Court found in favor of our clients. The Court held that the FDF's order was unlawful. It held that the employees’ contractual entitlement to variable remuneration was protected by the constitutional right to property. The taking of property requires a clear and express legal basis. Following Nater Dallafior's line of arguments, the Court held that Article 10a of the Swiss Banking Act allows only for temporary measures in relation to variable remuneration – for example a suspension of payouts while the bank receives government support. So when the FDF ordered the complete cancellation or reduction of bonuses, it exceeded its authority under Article 10a. The Court also made clear that Article 10a is not a rule of accountability. Its purpose is to ensure that government support is not misappropriated.

 This is the first judgment on the merits issued by any court in relation to the UBS-Credit Suisse merger. The judgment is subject to appeal to the Federal Supreme Court.

 The Court’s press release and the judgment can be found here.