New UBS chief Orcel got £17m golden hello

 
Tim Wallace
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SWISS bank UBS slashed its bonus pool again in 2012, its annual report showed yesterday, after the institution chalked up another loss.

The pool came in at SFr2.5bn (£1.75bn), down seven per cent on 2011’s figure and down 42 per cent on 2010’s performance-based payouts as the bank shakes up its operations and embarks on a programme of 10,000 job cuts.

But despite the squeeze on costs and the cut in overall bonuses, the investment bank and wealth manager paid out SFr24.77m (£17.3m) to take on dealmaking star Andrea Orcel from Bank of America Merrill Lynch.

The bank defended the enormous payout, arguing: “in line with market practice, he received awards as a replacement for deferred compensation and benefits forfeited by his previous employer as a result of his joining UBS.”

His payments – roughly one-quarter cash and the remainder in shares – will be deferred over three years.

Chief executive Sergio Ermotti saw his total compensation come in at SFr8.9m despite the bank’s losses.

The institution’s rising share price and improved capital levels gave the chief a SFr6.1m bonus, despite the losses and the Libor rigging fine – Ermotti only joined the bank in 2011 after the wrongdoing took place.

The next-best paid member of the group executive board is Americas boss Robert McCann with total compensation of SFr8.6m.