Business · Companies · 5 hrs ago
US court backs UBS in dispute over former Credit Suisse managers’ bonuses
A New York court upheld a decision backing UBS in a dispute over bonuses for former Credit Suisse managers.
Two former Credit Suisse managers challenged the cancellation of special bonuses linked to AT1 bonds.
During UBS’s emergency takeover of Credit Suisse in spring 2023, Switzerland’s financial regulator ordered the bank’s AT1 instruments and linked bonuses written off as worthless.
The managers argued the regulator lacked legal grounds because Credit Suisse met minimum capital requirements, but an arbitration panel rejected that argument.
The US court’s decision confirms that outcome, while a Swiss court also ruled the bonus cancellations lawful last week in a separate case involving former senior executives.
Other US lawsuits over the cancelled bonuses remain pending.
A New York court confirmed arbitration decisions rejecting bonus claims by two former Credit Suisse managing directors, according to reports cited by the articles.
Martin Ego and Jeffrey Jennings had challenged the write-down of their deferred-compensation certificates during Credit Suisse’s 2023 rescue merger with UBS.
They argued that Credit Suisse met minimum capital requirements and that no event triggering the write-down had occurred.
The arbitrator rejected their argument, interpreting capital adequacy to include a bank’s ability to manage risks and withstand financial stress.
A separate arbitrator awarded nearly $1 million to former Credit Suisse executive Matt Mitchell, and UBS is seeking to overturn that award.
- Who
- UBS and former Credit Suisse managing directors Martin Ego and Jeffrey Jennings.
- What
- A New York court confirmed arbitration decisions rejecting the managers’ claims over written-down deferred-compensation awards.
- When
- The court confirmation was reported on October 22, 2026.
- Where
- New York, United States.
- Why
- The managers argued there was no triggering “viability event” because Credit Suisse met minimum capital requirements; the arbitrator rejected their interpretation.
Former Credit Suisse managers
UBS
Trigger for write-down
Former Credit Suisse managers
Ego and Jennings argued that no “viability event” had occurred because Credit Suisse met minimum capital requirements.
UBS
UBS defended the write-down required as part of the rescue merger; the arbitrator rejected the managers’ argument.
Switzerland brokered UBS’s rescue merger with Credit Suisse and required the write-down of Credit Suisse’s contingent capital awards and $17 billion in AT1 instruments.
UBS asked a New York state court to confirm arbitration decisions rejecting claims by Martin Ego and Jeffrey Jennings.
Switzerland’s top court ruled that former Credit Suisse bankers whose bonuses were written down would not get the money back.
- Claimants
- Martin Ego and Jeffrey Jennings
- Awards at issue
- Contingent capital award certificates, or CCAs
- AT1 instruments written down
- $17 billion
- Separate arbitration award
- Nearly $1 million to Matt Mitchell
- Court location
- New York, United States
2 sources
What people are saying
capital adequacy is a broad term encompassing a bank’s ability to manage risks, absorb losses, and continue functioning in the face of financial and economic stresses
an impossible choice