Switzerland plans to legislate to mandate the deferral of bonuses for bank executives, for up to five years.

The Swiss government aims to incorporate the requirement of deferring bank executives' bonuses for several years into law as part of a package of measures to strengthen financial regulation following the collapse of Credit Suisse. The proposal unveiled by the Swiss government on Wednesday indicates that this measure will apply to large banks, including UBS Group, and may require that 40% to 60% of variable compensation be deferred for up to five years. Swiss Finance Minister Karin Keller-Sutter stated in Bern, Rewarding short-term gains at the expense of financial stability should absolutely not be the case.