Photo: Wikimedia Commons
Thanks to a trading scandal that put its investment banking unit deep into the red, UBS announced today it would clawback by 50% bonuses for its most successful investment bankers, the Wall Street Journal’s Deborah Ball reports.It is one of the largest clawbacks ever reported, she notes.
Just yesterday, we reported UBS’ bank-wide bonus pool decreased 60%.
Under rules the bank adopted in 2010, anyone set to earn $2 million or CHF 2 million whose units saw net annual operating losses can face clawbacks between 10% and 50%.
The fact the board reached for maximum punishment shows a more serious reckoning is afoot than many may have believed.