Swiss Bank UBS To Take Back Some Bonuses

A trading scandal last year cost UBS more than $2 billion and pushed it into the red. The bank plans to take back some of that money, according to The Wall Street Journal. UBS's board of directors decided to take back half of stock-based bonuses awarded last year, if the bonuses exceeded $2 million.

Copyright © 2012 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

STEVE INSKEEP, HOST:

The big Swiss bank UBS awarded some of its investment bankers millions of dollars in bonuses for their work last year. Now, according to The Wall Street Journal, it's taking some of that money back.

RENEE MONTAGNE, HOST:

Or clawing it back. That's our last word in business today. Claw back provisions implemented after the financial crisis allow banks to recover bonuses from employees. A trading scandal last year cost UBS more than $2 billion and pushed it into the red.

INSKEEP: The bank's board of directors decided to take back half of stock-based bonuses awarded last year, if the bonuses exceeded $2 million. So $1.9 million, that's OK. That's the biggest claw back to date, according to The Journal. Other banks have also been trying to rain in compensation.

MONTAGNE: Morgan Stanley plans to limit the cash portion of its bonuses to $125,000. And Deutsche Bank is capping this year's bonus payments at $265,000.

And that's the business news from MORNING EDITION on NPR News. I'm Renee Montagne.

INSKEEP: And I'm Steve Inskeep.

(SOUNDBITE OF MUSIC)

Copyright © 2012 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: