Swiss regulators in bonus crack down
SWITZERLAND’S financial regulator is proposing new rules to align executive reward more closely with long-term profits and will pay special attention to UBS, the Swiss bank bailed out by the government.
The Swiss Market Supervisory Authority, known as Finma, said it would tighten up rules in remuneration by January 2010, to prevent companies from offering incentives for excessive risk-taking.
But while most firms will have nearly a year to comply with the rules after a consultation period ending this August, UBS will have to comply before the end of the year.
UBS has been forced to scale back its rewards system after it sold a Sfr6bn (£3.4bn) bond to the Swiss government last year .