ZKB Executives and Key Personnel Face Delayed Bonuses in Revised Compensation Structure

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The Zurich Cantonal Bank (ZKB) has implemented changes to its bonus system in response to pressure from the Zurich government. Under the new system, the bank will cap bonuses at the previous year’s level, despite an increase in staff. This means that while the total bonus amount will be higher, the proportion of variable compensation in relation to total pay will be reduced. Additionally, a portion of the variable compensation for top executives and key personnel will be delayed, with the aim of promoting long-term thinking and discouraging short-term profit-seeking.

It is important to note that these changes will not result in financial losses for employees. The ZKB has reassured its staff that the new compensation model has been thoroughly reviewed by external experts, who have determined that the bank’s compensation is market-competitive and necessary for the successful continuation of its business model.

By implementing these adjustments, the ZKB aims to address concerns about excessive bonuses and ensure that its compensation practices are aligned with long-term business interests. It is worth mentioning that the bank’s fixed salaries are lower than those offered by its competitors.

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