The new compensation plan called
"Bonus-malus"
is a hold on bonuses of board members, executives and senior management
to discourage risky investments. The change comes after the bank revealed that
senior officials were
paid bonuses worth millions even though UBS had
to take a $60 billion government bailout after the bank lost $40
billion due to bad investments. UBS fell even under more pressure last week when the United States Attorney's Office said UBS management board member
Raoul Weil, head of UBS' global wealth management and business banking
unit, had been
charged with
hiding $20 billion in client money from American tax authorities.
UBS will hold a shareholder meeting Nov. 27 to formally
announce its compensation system alterations, which shareholders will
be asked to vote on along with the government bailout.
- Maria Woehr Also see:
Goldman's management takes one for the teamInterpreting the new Goldman partnership class
Not only will UBS' chairman of the board Peter Kurer and members of the executive board not receive bonuses for 2008, but starting next year UBS is putting a stop on bonus checks to its chairman and top executives.
