Such decision is directed to those who have contributed to the bank’s losses in the global financial meltdown, according Chairman Peter Kurer.
Return of executive compensation for past years at troubled financial institutions have been rare. The case of Leland Brendsel, former chief executive of the US mortgage Freddie Mac falls to this category. In November 2007 Leland Brendsel agreed in a settlement with the Office of Federal Housing Enterprise Oversight after a 2003 accounting scandal to pay $2.5 million in fines to the government, give back $10.5 million in salary and bonuses to the company and waive claims against the company for compensation worth $3.4 million.
Pressure has been growing on former UBS executives since the bank received a nearly $60 billion state bailout package last month. The repayments by the unidentified individuals bring to nearly 70 million francs ($59 million) the amount of money handed back to the bank by former executives over the past year.
Shareholders at the meeting voted overwhelmingly to accept conditions contained in the bailout, including a capital increase and issuance of mandatory convertible notes worth 6 billion francs.
Kurer said UBS had sought government aid in a timely manner because board members had watched “too many institutions in other countries either having to be bailed out at the last minute or otherwise being left to their fate.”
I am continuing to hold talks concerning further repayments and waivers, and would greatly welcome it if it comes to that, says Peter Kurer.
L.D.