Published November 04, 2012
ZURICH – Swiss bank UBS is working on a new bonus scheme for top management, including for those tasked with winding down some of its investment banking activities, a newspaper reported on Sunday.
A UBS spokesman declined to comment on the report. He said the bank generally announced details on compensation after fourth-quarter results were in.
UBS, which suffered huge writedowns on U.S. subprime bets and had to take government aid during the financial crisis, last week unveiled plans to fire 10,000 staff and wind down its fixed income business.
Investment bank co-head Carsten Kengeter leaves Chief Executive Sergio Ermotti's top team to lead the winding down of fixed-income activities that are no longer profitable due to stricter capital rules on riskier business introduced after the financial crisis.
The Der Sonntag newspaper reported that Kengeter had been given a "new, lucrative contract" to lead the 300-strong team in charge of the revamp.
"If they succeed in selling the assets in the investment bank at a profit, they will be involved in the payout pool," the newspaper said.
For 2011, when the bank was hit by a rogue trading scandal, investment bank bonuses were slashed by 60 percent. Kengeter said he would forego his bonus in the wake of the $2 billion rogue trading losses.
(Reporting by Catherine Bosley; editing by Jason Neely)