UBS CEO to forgo bonus due to share price drop

AP News
Posted: Mar 04, 2011 12:16 PM
UBS CEO to forgo bonus due to share price drop

The chief executive of Swiss bank UBS will forgo his bonus for the second year in a row because the share price did not increase during 2010, the company said Friday.

Oswald Gruebel, who helped UBS return to a profit last year for the first time since the start of the financial crisis, will not draw on bonus payments he was entitled to for 2010. His base annual salary is the same as when he joined the company in February 2009, at 3 million Swiss francs ($3.22 million), UBS said.

Gruebel was brought in from crosstown rival Credit Suisse to help the bank recover from the crisis _ it fell to a record 21 billion franc annual loss in 2008 _ and restore its image after a high-profile dispute with U.S. authorities over allegedly helping wealthy Americans evade taxes.

Last month, UBS reported that it had made a net profit of 7.2 billion Swiss francs ($7.5 billion) in 2010, compared with a 2009 loss of 2.7 billion francs, and that it had stanched rich customers' withdrawals.