UBS to cut bonus payments

In Hungary

Normal 0 21 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Normál táblázat"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} UBS plans to cut first half bonus payments to its employees by 4 billion Swiss francs ($3.67 billion), Swiss newspaper Sonntag CH reported on Sunday without disclosing its sources.

For 2007, the bank had paid in total 12 billion Swiss francs in bonuses despite substantial writedowns and a capital hike caused by the subprime crisis. A spokesman for the Swiss bank declined to comment on the report but said that bonus payments will “certainly be lower.” The cutbacks will mainly affect UBS’ investment banking and asset management staff, the newspaper said.

In total UBS reduced staff costs by 5 billion Swiss francs during the first half, as the troubled Swiss bank cuts its headcount by 5,500. The decision does not come as a surprise in the wake of the investment banking unit’s 23.5 billion Swiss franc loss, the newspaper said.

UBS had announced earlier this month that it will separate its loss-making investment bank from its prized wealth management arm, resulting also in a new bonus system. According to the bank’s new plans, bonus payments will no longer be calculated based on the group’s overall results but individual segments’ performances. (Reuters)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.