UBS boosts compensation for CEO and staff after profit rises

Zurich

UBS Group AG boosted chief executive officer Sergio Ermotti's pay and increased the bank's bonus pool by about 6 per cent after underlying profit rose.

The Zurich-based lender boosted the bonus pool for 2017 to 3.1 billion Swiss francs (S$4.3 billion), according to its annual report published on Friday. Mr Ermotti remains the highest paid executive, earning 14.2 million francs, up from the 13.7 million francs he received in 2016. That includes 11.4 million francs in variable compensation.

UBS's investment bank allocated the biggest discretionary payouts to the highest revenue generators and younger employees as competition from other industries intensifies, people with knowledge of the matter said last month. Andrea Orcel, head of UBS's investment bank, said in an interview in December that 2017 would be a "tricky year" for compensation in the industry, but that his company had done slightly better than a year earlie…