On Thursday, the Council of States clearly voted against a motion by National Councillor Prisca Birrer-Heimo (SP, Lucerne) that called for a ban on bonuses at systemically important banks such as UBS. The chamber rejected the proposal by 32 votes to 9, with 2 abstentions.

The National Council had approved the motion in May 2023 in the wake of the collapse of Credit Suisse. The upper chamber has now reversed that decision, with only left-wing parties supporting the proposal.

«The Motion is Quite Radical»

The majority in the Council of States pointed to a motion submitted by Jakob Stark (SVP, Thurgau) that was referred to the Federal Council last December and calls for limits on remuneration at systemically important banks. Stark aims to ensure that compensation systems and payouts do not create the wrong incentives. In addition, bonus payments should not be made if business performance is insufficient.

The upper chamber rejected the proposal by 32 votes to 9, with 2 abstentions. Only the left-wing members of parliament voted in favour. The matter is therefore closed.

Finance Minister Karin Keller-Sutter considered the proposal too far-reaching. «The Birrer-Heimo motion is quite radical. It represents a significant intervention in economic freedom if one simply tells an entire sector that it may not pay any bonuses,» the Federal Councillor said.