UBS considers clawing back executive bonuses

by Gill Montia

Story link: UBS considers clawing back executive bonuses

Swiss investment bank, UBS, may not pay bonuses promised to executives who invested in US sub-prime debt, and have since resigned.

The bank’s former chief executive, former finance director and former investment banking head are due to receive £33 million over this year and next.

So far, UBS has written down almost £29 billion in US sub-prime mortgage debt, more than any other European bank.

The group recently reported a 21% slide in third-quarter profit, to just over £900 million, and warned that further write downs will impact on its results in the final quarter of the year.

UBS has told shareholders it is now considering clawing back bonuses and the Swiss Government has indicated that it may amend company law to include aspects of executive pay.

In October, the Swiss authorities were forced to bail out the country’s biggest bank by moving some of its toxic securities to a separate fund entity, now under the control of the Swiss National Bank.