Where shrinkage ensued.
UBS increased salaries and bonuses this year to 11.5 billion Swiss francs from 11 billion in 2009, an increase of 4.3%. The bonus pool at the bank, however, decreased by 10% to 4.32 billion Swiss francs ($4.53 billion) from 4.8 billion Swiss francs in 2009.
UBS reportedly caved to public pressure in decreasing the size of its bonus pool. It plans to defer 1.55 billion Swiss francs, or about one third, of bonuses. The bank said in its earnings that "UBS's compensation model has been refined in conjunction with shareholder representatives and takes into account the guidance of [...] major international bank regulators."For employees who earn total compensation more than 250,000 francs, 60% of their bonus in shares will be deferred over thee years. The bank also said a number of employees in the investment bank will be "subject to higher levels of deferrals."