UBS Group AG executives were paid 6.9% less last year as the bank sought to balance a financial and reputational hit from the collapse of Archegos Capital Management with the need to retain talent and reward employees for a strong 2021.
The Swiss bank posted a $7.46 billion net profit in 2021, up from $6.56 billion the year before. However, its first half was marred by a $861 million pretax loss after the default of a U.S.-based client.
“The 2021 Group performance award pool was reduced significantly as a consequence of this event,” UBS said Monday in its annual report.
The bank paid its employees bonuses totaling $3.7 billion, up 10% from 2020. However, the executive board’s bonus pool was 6% lower on year. The executive board’s awards took a proportionally larger cut to reflect its accountability for the default, which hit its prime brokerage business.
In total, the executive board received 107.85 million Swiss francs ($117.6 million) in fixed and variable compensation, down from CHF115.86 million the previous year.
Chief Executive Ralph Hamers made CHF11.5 million in 2021, his first full year at UBS, less than the CHF13.32 million his predecessor, Sergio Ermotti, earned the year before.
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