The Swiss Financial Market Supervisory Authority Finma last week issued a circular effective January 1 next year governing remuneration practices in the financial sector and said its aim is to have a lasting impact on how salaries for financial sector professionals are designed. However, Finma decided against levying an absolute or relative cap on bonus payments.
Finma has paid particular attention to bonus payments, terming it the employees' stake in the success of the company however has not imposed a ceiling on bonuses. Finma makes the point that variable compensation should be dependent on whether performance which has been delivered is sustainable and the risks associated with the profits. Further, Finma suggests banks...
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