UBS follows Credit Suisse on pay reform
Swiss bank UBS has followed rival Credit Suisse in reforming its pay structure and matching bonuses to long-term performance.
The move will boost fixed salaries at the bank, according to an internal memo released to staff on October 5. UBS will not implement the changes until key units return to profit.
“At UBS, the ratio of variable to fixed compensation was in some cases particularly high,” the memo said.
“Fixed salaries at UBS should, in the future, be high enough that the variable portion can be adjusted from year to year, while still ensuring that the total compensation is in line with market standards.”
UBS already reformed its compensation system at the end of 2008 after a government bailout.
Credit Suisse last week announced plans to increase salaries for executives and link its bonus structure to sustainable performance. The bank’s changes, which are designed to meet G20 standards, come into force on January 1.
Switzerland’s financial regulator, Finma, will introduce reformed pay rules the same day.
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