UBS mulls paying staff allowances to meet EU rules

ZURICH Tue Feb 4, 2014 5:26am EST

ZURICH Feb 4 (Reuters) - Swiss bank UBS said it is considering following rivals and paying an extra allowance to staff to comply with new European Union rules that will cap the bonuses of its London staff to twice their salary.

"There are various options and it goes without saying one of those is to use allowances that are supplementary, and can be included in the fixed compensation framework," Chief Executive Sergio Ermotti said on a conference call.

He said UBS would decide in the "next couple of months" the best way to comply with the EU directive. Rivals including Barclays and Goldman Sachs plan to introduce monthly allowances that count as fixed pay, rather than bonus, for staff affected by the rules.