Zuercher Kantonalbank is setting limits on bonuses. In return, fixed salaries will be adjusted.
According to a statement on Friday, the Bank Council of Zuercher Kantonalbank (ZKB) is adjusting the remuneration model of the Zurich state-owned institution for the beginning of 2024. The supervisory body is pursuing two goals in doing so: on the one hand, to meet the demands of the owner and, on the other, to continue ZKB's «successful model» as a universal bank.
The variable remuneration for the 2023 financial year with payment next year will, in principle, be capped at the level of 2022, the statement added. This will decouple the variable compensation from the profit jump for 2023, given the good half-year result. The total variable remuneration will be increased solely due to changes in headcount.
Review at All Levels
The percentage of variable compensation in total compensation will be reduced in the new compensation model. At the same time, the fixed compensation will be adjusted to a more market-oriented level as of the beginning of 2024, according to the statement. The adjustment of the variable compensation model will take place in fiscal year 2024, with payment in 2025.
In the course of the adjustment of the compensation model, the bank council has reviewed the compensation at all levels with external experts, writes ZKB.
