(Recasts, adds detail)
ZURICH, March 10 UBS cut its bonus pool
by 17 percent in 2016 to 2.9 billion Swiss francs ($2.9 billion)
after full-year net profit almost halved at Switzerland's
In its compensation report published on Friday, UBS also
disclosed Chief Executive Sergio Ermotti received 13.7 million
francs in total compensation for 2016, down from 14.3 million a
year earlier. His bonus was down 5.2 percent.
While lower profits weigh on bonuses, UBS has also cut the
proportion of earnings dedicated to bonuses in recent years in
an effort to prevent the sort of risk-taking which contributed
to the financial crisis.
Most European investment banks paid out smaller bonuses in
2016 as they cut costs and sought to meet shareholder demands
for a greater share of profits.
German rival Deutsche Bank cut bonuses
drastically as it struggles to turn a profit and faces a big
bill for litigation.
Also on Friday, UBS lowered its 2016 profit, originally
reported in January, by 102 million francs to reflect a
settlement in March with the National Credit Union Association
over mis-selling residential mortgage-backed securities.
This resulted in full-year net profit coming in at 3.2
billion francs from 6.2 billion in 2015.
UBS shares fell 18.3 percent in 2016, a steeper drop than
the European banking sector index.
($1 = 1.0125 Swiss francs)
(Reporting by Joshua Franklin; Editing by Michael Shields)