ZURICH – UBS executives took house much less pay in 2021, Switzerland’s largest financial institution mentioned on Monday, as bonuses have been reduce over the financial institution’s $774 million loss from the collapse of U.S. household workplace Archegos.
The drop got here regardless of the financial institution posting its finest annual revenue since 2006.
In his first full 12 months as CEO, Chief Government Ralph Hamers acquired 11.5 million Swiss francs, the financial institution mentioned in its annual compensation report, lower than the 13.2 million Swiss francs his predecessor Sergio Ermotti collected for his ten months within the function in 2020.
“Along with the general 2021 efficiency of the Group and Mr. Hamers’ achievements …, the (board of administrators) additionally thought-about different components, resembling .. a loss from a U.S.-based shopper of our prime brokerage enterprise,” UBS mentioned within the report, referring to the Archegos-related loss.
Hamers joined UBS in September 2020, and took over as CEO in November that 12 months.
UBS reported its finest annual revenue for the reason that international monetary disaster for 2021, permitting it to step up share buybacks and set extra formidable revenue objectives.
That was regardless of a $774 million cost Switzerland’s largest financial institution reported within the first quarter of 2021 from the collapse of U.S. funding fund Archegos, which price international banks greater than $10 billion when the stricken household workplace defaulted on margin calls.
The group’s general govt board collected compensation of 107.8 million Swiss francs ($117.17 million) in 2020, down from 115.9 million Swiss francs in 2020. Efficiency-related bonuses fell to mirror the affect of Archegos, the financial institution mentioned.
Throughout the financial institution, the entire performance-based bonus pool rose 10% to $3.7 billion from $3.3 billion in 2020.
($1 = 0.9204 Swiss francs)
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