UBS Cancels Bonuses, Introduces Clawbacks

UBS (UBS) is getting medieval with its compensation for top managers, according to CNBC. The bank will give no bonuses this year, and future bonuses will be subject to a severe clawback. If the company reports a loss in any of three years following the bonus, the employees lose the whole.

The company isn’t the first to introduce a clawback mechanism — Morgan Stanley is doing something similar — but this strikes us as the most severe.  Make a loss — lose the bonus.

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