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UBS to slash its variable pay pot despite concerns on keeping staff
UBS will pay out less money in bonuses for 2010 than in the previous year. The Swiss bank’s total bonus pool for its some 65,000 employees will amount to SFr4.3bn (£2.8bn), compared with SFr4.8bn for 2009.
One reason for the lower amount was that UBS raised the fixed part of employees’ salaries by 10 to 20 percent, in line with practice at other banks.
UBS declined to comment on the numbers and said the bank would provide details about its salary system when it publishes full-year results tomorrow.
Analysts expect the bank to post a net profit of SFr7.4bn for 2010. It is understood that some UBS executives are concerned that smaller bonuses will be inadequate to retain top talent at the Swiss bank.