ZURICH Nov 4 Swiss bank UBS is
working on a new bonus scheme for top management, including for
those tasked with winding down some of its investment banking
activities, a newspaper reported on Sunday.
A UBS spokesman declined to comment on the report. He said
the bank generally announced details on compensation after
fourth-quarter results were in.
UBS, which suffered huge writedowns on U.S. subprime bets
and had to take government aid during the financial crisis, last
week unveiled plans to fire 10,000 staff and wind down its fixed
Investment bank co-head Carsten Kengeter leaves Chief
Executive Sergio Ermotti's top team to lead the winding down of
fixed-income activities that are no longer profitable due to
stricter capital rules on riskier business introduced after the
The Der Sonntag newspaper reported that Kengeter had been
given a "new, lucrative contract" to lead the 300-strong team in
charge of the revamp.
"If they succeed in selling the assets in the investment
bank at a profit, they will be involved in the payout pool," the
For 2011, when the bank was hit by a rogue trading scandal,
investment bank bonuses were slashed by 60 percent. Kengeter
said he would forego his bonus in the wake of the $2 billion
rogue trading losses.
(Reporting by Catherine Bosley; editing by Jason Neely)