Bonus Watch '12: UBS Suggests Senior Staff Get Comfortable

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Earlier today, as in a few minutes ago, we learned that UBS announced it would claw back 2010 bonuses for senior-ranking employees in the investment bank. This may have put a damper on some people's commute home but in happier news? Those individuals will be getting paid for last year's work (albeit at a slightly reduced rate) and the only strings attached are that they can never leave UBS.

Actually, they can leave in three years but, true or false, the idea of spending three more years there is probably sounding like an eternity right about now?

UBS said the so-called “special plan” awards, which were disclosed in Tuesday’s annual results and will be awarded this year, will have strict forfeiture conditions attached. Only about 5 per cent of UBS’s 17,000 investment bankers will be eligible and executives will have to remain with the Swiss group for three years before they can cash in the bonuses, according to people familiar with the plan. On average, each recipient would receive around SFr350,000 in deferred shares, although awards will vary significantly. UBS wants to minimise potential departures from its senior ranks after slashing the investment banking division’s bonus pool by 60 per cent in 2011, in recognition of both weaker revenues and the $2.3bn in unauthorised losses allegedly racked up by a London-based trader last summer.

UBS Fights To Hang On To Key Staff [FT]

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Bonus Watch '12: UBS

Numbers for first and second year analysts (who are not happy). "It's been two weeks since UBS numbers came out and nobody wants to talk about it, for obvious reasons. Second years (base: 80k) ranging 45-65k and heard of some first years getting around 40k (base: 70k). And they could only achieve these numbers ("in line with the street") after firing 30+ analysts right before communication day."

Bonus Watch '13: UBS

Not everyone received a package that resulted in a nice long cry. Andrea Orcel, for example, did pretty okay for himself.

Bonus Watch '13: UBS

The Swiss bank will reportedly announce today that it's going to be doing things a little differently around here re: compensation. One, deferrals will start at $250,000 and two, rather than being paid in UBS stock, the non-cash portion of 6,500 senior employees' bonuses will come in the form of subordinated debt that can and will be wiped out in the event the amount of capital on hand falls below the level required by EU regulators, putting the onus on everyone to make sure no one pulls an Adoboli and avoids multi-billion dollar fuck-ups in general.