In a move designed to bring about a "cultural shift" in the company, Switzerland's largest bank UBS has outlined a sweeping variable compensation plan reform. Notably, executive bonuses and compensation are likely to be linked to longer-term company performance from next year. The bank is also considering recalling some multi-million bonuses awarded to recently departed executives. (Ref. 080922)
The move comes just weeks after the Swiss National Bank handed UBS a CHF 6 billion ‘rescue package’ to help cover the bank’s global sub-prime mortgage losses. The package produced a wave of public and trade union criticism, and was followed by calls for more rigorous regulation of the banking sector, including executive wage caps and a more transparent award scheme in the future.
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