UBS To Create New Bonus Scheme For Managers

After careful consideration and consultation with Swiss financial regulator Finma, UBS decided to pay out 2 billion Swiss francs ($1.73 billion) in bonuses for 2008. UBS also plans to design new bonus scheme for managers in the second quarter. The

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After careful consideration and consultation with Swiss financial regulator Finma, UBS decided to pay out 2 billion Swiss francs ($1.73 billion) in bonuses for 2008. UBS also plans to design new bonus scheme for managers in the second quarter.

The measures are directed to rebuild its once powerful reputation after write downs of $49 billion during global financial turmoil.

The bonus equates to about 26,000 francs for each of the bank’s 77,000 employees. Under the new bonus scheme managers will receive bonuses in case of bank’s profitable operation.

The government also agreed to inject 6 billion Swiss francs of fresh capital into UBS in exchange for a 9.35% stake.

L.D.

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