UBS cuts payouts as shareholder meeting looms
UBS has unveiled a new bonus scheme for its employees as its cuts all bonuses to its executive board eleven days before a shareholders meeting that is expected to discuss questions about the bank’s payments to its chief executives.
The Swiss bank said it would introduce a new compensation model that will be predominately based on long-term performance using a so-called bonus/malus system.
Under the scheme, a maximum of one-third of any bonus will be paid out to staff in one year, whereas the other two-thirds of the bonus will be held in an account and only paid out on the basis of longer term performance.
“Should UBS achieve a loss in a subsequent year, no bonus will be awarded, and the cash balance will be reduced by a malus,” UBS said in a statement on the new scheme.
Top management, including bank chairman Peter Kurer and chief executive Marcel Rohner have also said they will forego any bonuses this year.
UBS shareholders meet on November 27th to approve the bailout package from the Swiss National Bank and debate compensation issues.
The Swiss public and many of the bank’s shareholders have publically called for the bank’s ex-senior managers to give back at least some of the bonuses they received last year.
Former UBS chief executive Peter Wuffli voluntarily forfeited SFr12m recently, saying high payments at troubled companies can't be justified.
Attention has since moved to Marcel Ospel, the former executive chairman of the bank, who received large bonuses and other payments before he was forced to resign earlier this year.
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