Cancellation of the aggregate amount of variable remuneration and of deferred variable remuneration

(1) Where the resolution conditions are satisfied, the resolution authority may direct the institution or group entity to limit the aggregate annual amount provided for the variable remuneration of all managers and employees (aggregate amount of variable remuneration) to a specific proportion of annual profit, or to cancel it entirely. Exempt from the limitation under the first sentence are components of variable remuneration agreed 1. by collective bargaining agreement, or 2. within the scope of a collective bargaining agreement, by agreement of the parties to the employment contract on the application of the provisions of the collective bargaining agreement, or on the basis of a collective bargaining agreement, in a works or service agreement.
(2) Where the resolution conditions are satisfied, the resolution authority may direct the institution or group entity to reduce or cancel all deferred variable remuneration already withheld from managers and employees within the meaning of section 25a(5), third sentence, of the Banking Act and section 20(1) and (2) of the Remuneration Ordinance for Institutions.