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USB head forgoes bonus until bank recovers from loss

(Xinhua)
Updated: 2008-10-19 15:09

GENEVA -- Chairman of UBS AG Peter Kurer told Swiss radio DRS Saturday that he would give up his 2007 and 2008 bonus until the bank has recovered from its losses in the financial crisis, and that the Swiss government's bailout for the bank has not lost out.

On Thursday shortly after the Swiss government and central bank announced a bailout package of some 60 billion US dollars for the nation's largest bank, he said he would "most probably not get a bonus for this year because we still have a loss."

It was not clear how much the bonus would have been.

Kurer replaced Marcel Ospel as UBS chairman in April. Ospel had been heading the bank for 10 years but had to give up a re-election bid this time as the bank's bad performance in 2007 produced huge pressure from shareholders which led to him stepping down.

Bank executives' high pay has drawn criticism in Europe and the United States as governments pursue bailout plans for the financial institutions hit by the global financial crisis.

On Friday, Deutsche Bank AG announced its Chief Executive Officer (CEO) Josef Ackermann will forgo his 2008 bonus. Meanwhile in Italy, UniCredit SpA CEO Alesandro Profumo told reporters he will not receive his performance-related pay this year as the bank will not meet its target.