• Switzerland edition
 
UBS reveals lofty bonuses despite losses
UBS CEO Sergio Ermotti (right) received almost nine million francs in pay. Photo: UBS

UBS reveals lofty bonuses despite losses

Published: 15 Mar 2013 08:44 GMT+01:00
Updated: 15 Mar 2013 08:44 GMT+01:00

In a compensation report issued on Thursday, Switzerland’s largest bank said it paid out 70 million francs to executive committee members, around the same as the previous year when it raked in a net profit of 4.2 billion francs.

CEO Sergio Ermotti, received a salary and bonuses of 8.9 million francs, up from 6.35 million francs in 2011, a year in which he spent less than four months as chief executive.

The bank said its total bonus pool for senior managers and staff fell by 27 percent in 2012 to 2.5 billion francs from 2.7 billion francs the previous year.

However, the number of employees also dropped significantly over the period after UBS last year announced a multi-year plan to shed 10,000 jobs.

UBS Chairman Axel Weber defended the pay packages due to what he called a “positive performance” at the bank despite the red ink soaking the financial sheets.

“We have in 2012 set a new course for the future of the firm and made good progress in solving problems related to the past,” Weber was quoted as saying by the German-language SDA news agency.

Weber, who was appointed chairman in May 2012, received total compensation of more than 4.2 million francs, including shares valued at over two million francs.

In its compensation report, UBS said the bank’s underlying performance was better than the net loss posted, noting more than three billion francs in goodwill impairments, plus 1.4 billion francs in fines and costs relating to the Libor rate-fixing scandal.

The report also highlighted the fact the bank’s shares rose 28 percent over the year.

Meanwhile, pay to top executives, including Ermotti, included deferred bonuses that will only be paid if the bank meets certain targets.

The impact has not yet been felt on an initiative, passed by voters in Switzerland earlier this month, that will require binding votes by shareholders of Swiss companies on executive pay.

The initiative also bans golden parachutes and payments paid to lure executives to join a company.

The compensation report reveals that UBS offered co-head of its investment bank Andrea Orcel almost 25 million francs in deferred cash and shares to lure him away from Bank of America/Merrill last July.

The payment compensates for benefits forfeited by Orcel for leaving Bank of America, UBS said.

The deferred payments will be paid in installments this year, in 2014 and in 2015.

Such payments appear to be banned under the population initiative spearheaded by Schaffhausen businessman and independent senator Thomas Minder.

Malcolm Curtis (news@thelocal.ch)

Your comments about this article

2013-03-18 12:24:34 by smeghead
they cause a finacial fiasco, then reward them selves for it. what's wrong with that?
answer please on a self Adresse orange
Today's headlines

Swiss confirm European terror plot by three Iraqis

Swiss authorities confirmed on Friday that three Iraqis arrested in March are suspected of having planned a terrorist attack in Europe on behalf of the Islamic State group. READ  

Violent teen rearrested after therapy fails
Carlos was arrested in Zurich. Photo: Justin Otto

Violent teen rearrested after therapy fails

Following a fight in Zurich city centre, police have rearrested a teenager with a history of violent behaviour whose costly therapy programme provoked public outrage earlier this year. READ  

Gold reserves boost Swiss national profits
Swiss gold reserves rose in value by 3.3 billion euros. Photo: Bullion Vault

Gold reserves boost Swiss national profits

The Swiss central bank reported a profit equivalent to 23.6 billion euros for the first nine months of the year on gains from currency trading and a rise in the value of its gold reserves. READ  

Kosovan sex slave flees Switzerland for Austria
File photo: Francesco di Fazio

Kosovan sex slave flees Switzerland for Austria

A 19-year-old woman from Kosovo who claims she was forced into prostitution and kept as a sex slave in a cellar in Switzerland for almost three years has sought asylum in Austria. READ  

Swiss shun religion for the supernatural
Some 24 percent of those surveyed said they believed in angels. Photo: K Hurley

Swiss shun religion for the supernatural

While the number of religious people in Switzerland is on the decline, nearly two thirds of Swiss believe in the supernatural, according to a new survey. READ  

Swiss politicians against pedestrians on phone
Texting in the street is a dangerous distraction, feel politicians. Photo: Matthew Kenwrick

Swiss politicians against pedestrians on phone

The days of whatsapping while walking could be over in Switzerland if some politicians get their way. Members of the Swiss People’s Party (SVP) are calling for people who walk about the streets with their eyes on their smartphones to be punished, saying they are a danger to themselves and others. READ  

Federer advances as Wawrinka falls in Paris
Photo: Franck Fife/AFP

Federer advances as Wawrinka falls in Paris

Roger Federer advanced at the Paris Masters tennis tournament on Thursday after beating Frenchman Lucas Pouille in two sets. READ  

Geneva doctors dress for battle with Ebola virus
Health workers take part in pre-deployment training. Photo: Fabrice Coffrini/AFP

Geneva doctors dress for battle with Ebola virus

Sweating behind fogged-up goggles, Thanh Dang meticulously follows each instruction as she peals away layers of protective clothing, stopping repeatedly to wash her double-gloved hands in chlorine disinfectant. READ  

Former Coop Bank CEO faces three-year ban
FINMA found irregularities at the bank. Photo: Coop Bank

Former Coop Bank CEO faces three-year ban

The Swiss Financial Supervisory Authority (FINMA) has banned former Coop Bank CEO Andreas Waespi from any managerial role for three years after it was found he manipulated share prices at the bank. READ  

Federal law aims to ease Swiss rent rises
New tenants will now have the right to know the rent paid by their predecessors. Photo: Ruth Hartnup

Federal law aims to ease Swiss rent rises

Anyone taking on a new lease on a rental property in Switzerland will have the right to know what rent the landlord charged the previous tenants under new changes to the tenancy law. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Job candidates unhappy with hiring process in Switzerland
National
Glacier 3000 opens new foot bridge spanning two mountains in Vaud
National
Swiss seek special Unesco heritage listing for yodelling and watchmaking
International
Switzerland regarded as best place in world for expats: global survey
National
Red faces at Migros over Hitler and Mussolini coffee cream pots
National
Quarter of workers in Switzerland 'stressed out': new survey
Travel
Lonely Planet ranks Zermatt among top places to visit in 2015
National
Majority of Swiss back proposed new immigration curbs: poll
Features
Eritrean asylum seekers find refuge in Swiss monastery town
National
Expat American professor disputes 'unjust' Swiss citizenship rejection
National
Sputtering eurozone drags down Swiss economic growth forecast
Features
Swiss-based English expat writer lauds immigrant 'brains and brawn'
International
Our survey: Switzerland third priciest for food and drink from back home
National
Zurich market gardener sets world 'record' for heaviest pumpkin
National
Report: Switzerland's residents richer than before economic crash
Features
Geneva lab sleuths use high tech to help art world uncover fakes
National
Father of Scot missing since early September fears Swiss trauma
National
Foreign women give birth to rising share of newborns: latest figures
National
'Giant's penis' bloom in Basel uni botanical garden bigger than ever
National
Switzerland's voters reject public health insurance proposal
National
Zooming foreign immigration continues to boost Swiss population
National
Scientific study rings alarm over wellbeing of Swiss cows with bells
National
Geneva MP seeks ban on charging for tap water in restaurants
Business & Money
Switzerland's residents top world financial wealth list: Allianz report
National
Saint Maurice abbey in Valais celebrates 1,500 years of history
National
Streaming movie video service Netflix arrives in Switzerland
National
Professional Chilean base jumper dives to death in Swiss Alps
Education
ETH Zurich remains top university in Europe: QS world rankings
National
Switzerland's housing vacancy rate jumps: new federal figures
National
Swiss football club fires team masseuse over explicit sex video
National
Geneva police arrest easyJet passenger over hand luggage row
Business & Money
Latest forecasts for Swiss economic growth turn less bullish
Sport
Formula One legend Schumacher to continue treatment at Swiss home
National
Former federal planning official calls for nine Swiss cantons
Features
The Local gets the lowdown on mushroom picking in Switzerland
National
Virgin boss Richard Branson's son rescued from peak of Matterhorn
National
Swiss President Didier Burkhalter's commute turns Twitter sensation
Features
High-tech cameras give dizzy view of Eiger's north face (VIDEO)
Politics
Baden municipal council strips 'nude selfies mayor' of duties
Business & Money
Switzerland stays atop competitiveness table for sixth year
National
Federal parliament secretary agrees to step down over nude selfies
National
Swiss residents pick Swedes as ideal European soul mates: survey
National
Zurich officials call project to move prostitutes to 'sex boxes' a success
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

2,202
jobs available