UBS cuts bonuses by 10pc despite return to profit
Staff bonuses at UBS will be 10pc lower this year than in 2010 despite the Swiss bank returning to profit.
UBS made a Sfr7.2bn profit compared with a Sfr2.7bn loss in 2009 Photo: AFP
By Harry Wilson 7:00AM GMT 09 Feb 2011
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A total of Sfr4.3bn (£2.8bn) will be paid out in bonuses for 2010, Sfr460m less than the year before, despite the bank making a Sfr7.2bn profit compared with a Sfr2.7bn loss in 2009.
Of the bonuses paid out by UBS, at least 60pc will be paid in the form of shares deferred over three years for those with base salaries of more than $250,000 (£155,000), and for directors about three-quarters of pay will be subject to clawback for five years.
"While we made substantial progress in 2010, we are fully aware that we have to continue to improve our results," said Oswald Grübel, chief executive of UBS.
Swiss banks have been at the forefront of reforming banking industry pay and were the first back in early 2009 to cut bonuses and increase salaries.
Under its new compensation plan, UBS has indentified 200 "key risk takers and controllers" within the bank whose pay will be subject to tough performance criteria. These will include clauses that mean if the business they are working in does not make a profit the individual will not receive the full bonus awarded to them from the previous year.
The improvement in UBS's performance was largely the result of lower credit losses.
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