Unnecessary bonuses saved

Zurich, Switzerland (GenevaLunch) -  UBS has announced changes in its pay policy in an internal memo seen by Reuters. Fixed pay will become a more substantial portion of the total pay package, where previously “the ratio of variable to fixed compensation was in some cases particularly high”, the memo says. The total compensation package will still be in line with market standards, UBS says in the memo to its employees, communicated 5 October.

UBS pays its senior employees in shares or options. These will be frozen for three years before the employee can actually trade them. UBS will only start to pay bonuses when it is profitable again.

UBS follows Credit Suisse which announced last week a a new compensation policy in line with G-20 recommendations. They are the first global banks to face the issue of bonuses, which have infuriated many in light of the massive bail-outs of banks by governments in the USA and Europe with public funds.

Link to other site: NZZ (Ger),  TSR

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