• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Finance

UBS Has Cut Down on Bonuses, Including for Its CEO

By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
March 10, 2017, 2:54 AM ET
Day Two Of The World Economic Forum (WEF) 2017
Sergio Ermotti, chief executive officer of UBS AG, pauses during a Bloomberg Television interview at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 18, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum in Davos from Jan. 17 - 20. Photographer: Simon Dawson/Bloomberg via Getty ImagesSimon Dawson/Bloomberg via Getty Images

UBS cut its bonus pool by 17% in 2016 to 2.9 billion Swiss francs ($2.9 billion) after full-year net profit almost halved at Switzerland’s biggest bank.

In its compensation report published on Friday, UBS also disclosed Chief Executive Sergio Ermotti received 13.7 million francs in total compensation for 2016, down from 14.3 million a year earlier. His bonus was down 5.2%.

While lower profits weigh on bonuses, UBS has also cut the proportion of earnings dedicated to bonuses in recent years in an effort to prevent the sort of risk-taking which contributed to the financial crisis.

Most European investment banks paid out smaller bonuses in 2016 as they cut costs and sought to meet shareholder demands for a greater share of profits.

German rival Deutsche Bank (DB) cut bonuses drastically as it struggles to turn a profit and faces a big bill for litigation.

Also on Friday, UBS lowered its 2016 profit, originally reported in January, by 102 million francs to reflect a settlement in March with the National Credit Union Association over mis-selling residential mortgage-backed securities.

This resulted in full-year net profit coming in at 3.2 billion francs from 6.2 billion in 2015.

UBS shares fell 18.3% in 2016, a steeper drop than the European banking sector index.

About the Authors
By Reuters
See full bioRight Arrow Button Icon
By Michelle Toh
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.