UBS: Bonuses Canceled, With Clawbacks (How The Swiss Do A Bank Bailout)

[MannyGoldstein]

The Swiss probably know a thing or two about banking: it's been their #1 export for many, many years.

Here's what they did when the Swiss government bailed out UBS: they made it a bank bailout, instead of the banker bailout that Paulson, Summers, and Geithner have architected.

UBS Cancels Bonuses, Introduces Clawbacks

"UBS (UBS) is getting medieval with its compensation for top managers, according to CNBC. The bank will give no bonuses this year, and future bonuses will be subject to a severe clawback. If the company reports a loss in any of three years following the bonus, the employees lose the whole.

The company isn't the first to introduce a clawback mechanism -- Morgan Stanley is doing something similar -- but this strikes us as the most severe. Make a loss -- lose the bonus."

[NV Whino]

1. Seems simple, no?

[MannyGoldstein]

2. What Do The Swiss Know That We Don't?

Perhaps they have magic powers that we don't.

[NV Whino]

5. Must be the chocolate

[aquart]

3. How perfectly sensible.

What is frightening is that they're calling it "severe".

[hobbit709]

4. You'd hear the howling on the moon

if the "privileged" ones had to give the money back.