by Wall Street Job Report on April 24, 2012
UBS AG (UBSN) will base Chief Executive Officer Sergio Ermotti’s bonus in part on the progress he makes in restoring the reputation of Switzerland’s biggest bank, Chairman Kaspar Villiger said.
“The idea behind this is that you try to evaluate the CEO according to what’s necessary for executing the company’s strategy in the long term,” Villiger said in an April 18 interview in Vienna. “There are nine criteria in total, of which some shall be qualitative,” he said. “Reputation is one of them. It will count more than one ninth.”
Villiger, whose tasks include developing recommendations for the CEO’s pay with the compensation committee, said the bank won’t assess Ermotti’s performance by profit alone, but will also include targets for boosting capital ratios and cutting risk-weighted assets. Client and staff satisfaction will also play a role, he said.
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