Reuters reports that three former UBS executives have agreed to forgo around $27.5m in compensation payments due from the bank.
Former UBS Chairman Marcel Ospel, ex-Deputy Chairman Stephan Haeringer and former Chief Financial Officer Marco Suter have all voluntarily joined ex-CEO Peter Wuffli and given up the payouts in the light of the Swiss government's recent $60bn bank assistance package. Ospel said in a statement: 'With the involvement of the Swiss government, I realized that decisive action was required on my part. I hope that my action will resolve a situation that was inconceivable to me until a short time ago'. All eyes are now on some of the bank's non-Swiss staff executives to see if they follow the example set by their former colleagues. In focus are former investment banking heads John Costas and Huw Jenkins, and former group CFO Clive Standish.
Finally, Bloomberg reports that AIG has scrapped bonuses for seven of its top executives, and that new CEO Edward Liddy, appointed by the US government after the bailout of the company, is to work for $1-a-year through 2009. Liddy will, however, be awarded stock grants.
New York state Attorney General Andrew Cuomo praised AIG. for taking such a 'positive step' and urged other financials to follow the firm's lead. Cuomo said: 'Taxpayers have been slammed with a one-two punch seeing their investments dwindle while simultaneously having to fund the Wall Street bailout with billions of their tax dollars. It is only fair that top executives, who benefit the most when firms do well, should also bear the burden of the difficult economic consequences their firms now face'.
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