Birds sit on wires in front of the logo of Swiss bank UBS at the Paradeplatz square in Zurich (click here)
REUTERS/Arnd Wiegmann
Mon Nov 17, 2008 11:34am EST
(Corrects paragraph 15 to say that shareholders will vote on new scheme at next year's AGM, not at Nov. 27 EGM)
By Jason Rhodes and Lisa Jucca
ZURICH (Reuters) - Swiss bank UBS axed bonuses for top executives Monday and said it would introduce a more transparent pay system in the most far-reaching changes on pay at a top European lender during the credit crisis.
UBS, which is struggling in the subprime crisis and whose shares slumped to a new all-time low Monday, said Chairman Peter Kurer, Chief Executive Marcel Rohner and other executive board members would not get any bonuses this year.
Starting from 2009, top managers' bonuses will be blocked for at least three years instead of being paid immediately and executives will receive variable pay if UBS results warrant.
Under the new system, the chairman will only be awarded a fixed salary. Kurer's fixed-pay salary for this year was 2 million Swiss francs ($1.68 million), he said Monday.
"UBS is fully committed to taking its responsibilities seriously and correcting previous errors," the bank said....
If it happened at UBS, where are the rest of them?
UBS uncovers tax fraud cases (click title to entry, thank you)
David Gow
guardian.co.uk, Thursday November 27 2008 16.19 GMT
Troubled Swiss bank UBS today admitted it had uncovered a "limited number" of cases of tax fraud under both US and Swiss tax law.
The revelation came from the chairman, Peter Kurer, as US authorities continue to look into the tax advice UBS has given to thousands of Americans.
Kurer also told an extraordinary meeting of shareholders in Lucerne that bank secrecy was "not absolutely valid". He said bank secrecy "is not there to protect cases of tax fraud", adding: "Such an absolute pretence would only damage bank secrecy."
Switzerland and Liechtenstein are under global pressure to revise their banking secrecy laws as tax authorities clamp down on tax evasion by wealthy individuals holding accounts in both countries
Kurer's comments, in a speech long on criticism of the bank's arrogant culture in the past, suggest UBS is preparing to hand over details of clients' accounts to US authorities investigating tax fraud. But Kurer insisted UBS had not violated bank-client confidentiality.
Just two weeks ago Raoul Weil, the head of UBS's private banking operations in the US, was forced to stand down after being indicted by a federal grand jury in a tax fraud case.
The department of justice alleges that 20,000 American clients have been systematically using Swiss bank accounts to conceal $20bn (£13bn) of assets from the Internal Revenue Service....
