People familiar with the situation, meanwhile, told Reuters that bonuses for the investment bank's highest ranking executives would be paid out entirely in deferred shares and zero cash.
The deferred payments will be distributed in three annual installments, each of which may be canceled in any year the bank reports a loss.
UBS declined to comment, except to confirm a Swiss government spokesman who earlier on Thursday said that '2008 variable compensation will be reduced by over 80 percent. A part of those payments is derived from working contracts; others include further variable remuneration components. The definitive numbers are still being worked out.'
Based on the roughly 10 billion Swiss francs in cash and stock paid out last year, that would reduce the UBS bonus pool to less than 2 billion francs. Out of that pool, roughly 1.3 billion francs are to be paid out under the terms of preexisting employment contracts, the sources told Reuters.
(Reporting by Joseph A. Giannone; Editing by Brian Moss) ($1 = CHF 1.1528) Keywords: UBS/BONUSES (joseph.giannone@thomsonreuters.com; +1 646 223 6184; Reuters Messaging: joseph.giannone.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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