Pay Rises at UBS Despite Net Loss

[Heidi]

Source: Wall Street Journal

AUGUST 5, 2009

UBS AG Chief Executive Oswald Grübel ruled out Tuesday guaranteeing bonuses to investment bankers.

"I think, in general, guarantees are a mistake," he said of a tactic to retain top staff that became a symbol of the excesses that led to the credit crunch.

UBS's investment bank nevertheless recorded higher performance-related compensation and basic salary increases in the second quarter, despite posting a pretax loss of 1.8 billion Swiss francs ($1.7 billion). Total staff expenses at the investment bank were 24% higher than in the first quarter, rising to 1.5 billion francs even as the number of staff at the division fell by 1,100. UBS Chief Financial Officer John Cryan said competitive pressure for talent contributed to an approximately 80% rise in bonus accruals at a group level.


Read more: http://online.wsj.com/article/SB124942961706606185.html?mod=googlenews_wsj

[aquart]

1. Oh, why can't we hang a few? Just to make a point.

I really do feel bloody-minded about these bonuses.

[Hubert Flottz]

2. Maybe owning Enron has infected UBS...

UBS Warburg

http://www.lawyershop.com/practice-areas/criminal-law/white-collar-crimes/securities-fraud/lawsuits/ubs-warbug/

UBS Emerges as Winning Bidder For Enron Energy-Trading Unit

http://bodurtha.georgetown.edu/enron/UBS%20Emerges%20as%20Winning%20Bidder%20For%20Enron%20Energy-Trading%20Unit.htm

McCain’s Cronies: Handling Gramm’s Enron/UBS Baggage?

http://firedoglake.com/2008/05/28/mccains-cronies-handling-gramms-enronubs-baggage/

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