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UBS to Revamp Internal Pay, Bonus Structure

Published: Tuesday, 27 Oct 2009 | 1:16 PM ET

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By: Reuters

UBS plans to improve its pay structure by hiking fixed salaries and matching bonuses to sustainable performance, but won't implement the changes until its key businesses return to profit, an internal memo showed.

Swiss bank UBS [UBS Loading... () ] already overhauled its compensation system at the end of 2008 after receiving state aid from the government.

UBS

The internal memo, released to UBS staff on Oct. 5, showed that the bank now plans to go further to meet regulatory demands in Switzerland and internationally.

"At UBS, the ratio of variable to fixed compensation was in some cases particularly high," the memo said.

"Fixed salaries at UBS should, in the future, be high enough that the variable portion can be adjusted from year to year, while still ensuring that the total compensation is in line with market standards."

Swiss competitor Credit Suisse [CS Loading... () ] announced a review of its compensation structure last week, making it the first major global bank to meet G20 standards.