UBS AG, Switzerland’s biggest lender, cut its 2011 bonus pool by 40 percent and investment bank chief Carsten Kengeter waived any variable pay entitlement as his division posted a second consecutive quarterly loss. The bonus pool, including pay deferred into future years, fell to 2.57 billion Swiss francs ($2.8 billion), from 4.25 billion francs in 2010, the Zurich-based bank said today. The pool at UBS’s investment bank is down 60 percent.
“I don’t see how compensation should stay the same or go up if profitability of the banking industry is going south,” Chief Executive Officer Sergio Ermotti told reporters in Zurich today. “We’re trying to strive for a situation in which both the shareholder and employee can have a win-win situation.”
While many of the world’s largest lenders, including Deutsche Bank AG and JPMorgan Chase & Co., are curbing pay as they grapple with shrinking revenue, UBS’s cuts are among the deepest. The dwindling bonus pool, down from 4.8 billion francs awarded in 2009 when UBS reported a 2.74 billion-franc loss, means the bank risks losing staff, said Matthew Czepliewicz, an analyst at Collins Stewart Hawkpoint Plc in London…..]
Read all about it at http://www.bloomberg.com/news/2012-02-07/ubs-reduces-2011-bonus-pool-40-as-investment-bank-posts-losses.html
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