A Swiss federal court, the Bundesverwaltungsgericht, has ruled that the Swiss government's decision to reduce or cancel the bonuses of approximately 1,000 former Credit Suisse managers was unlawful. The finance ministry lacked sufficient legal basis for the cuts, which affected variable compensation totaling around 62 million Swiss francs. The court determined that the affected bonuses were contractually guaranteed claims protected by property rights under the Swiss constitution. The government had ordered in May 2023 that all outstanding variable compensation for top management be cancelled, with reductions of 50% and 25% for the next two management levels. The court found that Article 10a of the Bankengesetz did not provide an adequate legal basis for the action, and that state aid to Credit Suisse ended in August 2023. This was a pilot ruling, and four additional related complaints are pending. The judgment is not yet final and may be appealed to the Swiss Supreme Court. The court also noted that no proven misconduct was established for the managers affected. Some continue to work for UBS, and the payments in question would now be the responsibility of UBS as Credit Suisse's legal successor. The decision may have implications for ongoing lawsuits related to the write-down of Credit Suisse AT1 bonds.