UBS intends to reform its pay structure by raising fixed salaries and matching bonuses to sustainable performance, but the Swiss banking and wealth management group will not carry out the changes until its key units are profitable, according to Reuters, citing an internal memo.
UBS intends to reform its pay structure by raising fixed salaries and matching bonuses to sustainable performance, but the Swiss banking and wealth management group will not carry out the changes until its key units are profitable, according to Reuters, citing an internal memo.
The Swiss bank had already overhauled its compensation system at the end of 2008 after the Swiss government rescued it from the sub-prime crisis with a cash injection.
Banks are under pressure from policymakers to align executive compensation more closely to the long-term interests of clients and bank shareholders, to prevent short-term risk-taking that has been blamed for helping fuel the recent financial crisis.
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The internal memo released to UBS staff on 5 October showed the bank now plans to go further to meet regulatory demands in Switzerland and internationally, the news service said.
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