Following the takeover of Credit Suisse by UBS with the help of the Swiss National Bank, its governing board is in the spotlight. Nearly all members earned more despite the central bank's record loss.
The members of the Governing Board of the Swiss National Bank (SNB) earned significantly more last year, according to the annual report of the central bank released Tuesday.
Based on salary alone, compensation was up by just over half a million francs to 3.39 million Swiss francs ($3.65 million). The bulk of the increase is likely to do with Martin Schlegel having been appointed vice-chairman for the retiring Fritz Zurbruegg. Schlegel's gross salary increased to nearly 390,000 francs.
If the social contributions are included, the compensation of the SNB's Executive Board increased by more than 600,000 francs.
One Million Francs
President Thomas Jordan was given a raise of nearly 100,000 francs, increasing his gross salary to 928,400 Swiss francs. Including social contributions, his total remuneration topped the one million-francs mark with 1.036 million, according to the report.
Andrea Maechler, who is leaving the SNB to join the Bank for International Settlements earned less last year, with her gross salary falling just over 24,000 francs to 928,400. She also earned less in total compensation of 958,700 which was nearly 26,000 less than she earned the year before.
Since Maechler has resigned, her salary continuation after the end of her term of office will presumably not apply. SNB directors are otherwise entitled to this for six months.
Outgoing vice-chairman Zurbruegg earned around 50,000 more in gross- and total remuneration, with 928,400 and 993,400, respectively.
An Eventful Year
The board was busy last year guiding the bank out of its negative interest rate policy, with the SNB also recording a record loss of 132 billion francs, as finews.com reported. The upshot was that the Swiss federal government and Cantons will have to forego the distributions of billions of francs this year and likely the next from the SNB.
This year is providing the SNB with another set of challenges. The takeover of Credit Suisse by UBS has not made the central bank's job any easier. How the authorities and the SNB elected to proceed with the new backstop liquidity for the two banks has led to a great deal of criticism.
Salary Comparison
According to the SNB, the compensation of the members of the Enlarged Governing Board consists of their salary and a representation lump sum. It is based on the level of compensation that is customary at other companies of similar size and complexity in the financial sector and large federal companies.
