The Highest Paid UBS Executive Is........

Carsten Kengeter, the CEO of the investment bank.

Bloomberg reports that although Kengeter, 43, saw his 2010 compensation fall by 29%, he still bagged a $10.1m compensation package last year, to become UBS's highest-paid executive for the second-year running.

The bank has now published its 2010 Compensation Report, and here's the summary:

Bonuses granted for 2010

In making UBS’s compensation decisions for 2010, the Board of Directors and the Group Executive Board have carefully balanced all the relevant factors such as our improved business performance, industry compensation trends and regulatory requirements.

From a shareholder’s perspective, it is essential to weigh the short- term potential for raising profitability against the long-term requirement to retain and attract key staff. Although our financial performance in 2010 was markedly better than in 2009, with an increase in profitability of $10.7bn, given the considerations outlined above, the bonus pool for 2010 was set at $4.57bn, 11% lower than it was last year.

High levels of deferred bonuses for Group Executive Board members

At least 76% of a GEB member’s bonus, including 60% in equity (under the Performance Equity Plan (PEP) and the Senior Executive Equity Ownership Plan (SEEOP)), is deferred and at risk of forfeiture for periods of up to five years. Moreover, the vesting of these awards is subject to the fulfillment of specific performance conditions. A maximum of 24% in cash (under the Cash Balance Plan (CBP])) is paid out immediately, subject to a cap of CHF / USD 2 million.

- As in 2009, the Group CEO (Oswald Gruebel)  has decided to waive the bonus. (He took a base salary of $3.2m)

- The highest paid GEB member in 2010 was Carsten Kengeter, with a total compensation of $10.1m: 88% of his bonus was deferred, with 28% in deferred cash and 60% in deferred equity vesting over three to five years.

- In total, the compensation for GEB members in office on 31 December 2010 was $98.0m, compared with a total of $74.0m in 2009.

- The Chairman of the BoD, Kaspar Villiger, chose to waive a substantial part of the share award and instead to accept a limited number of 26,940 UBS shares with a fair value of $538,907. In addition, he decided to maintain the voluntary reduction in his annual base salary from $2.15m to $916,000. Kaspar Villiger is the highest paid member of the BoD, with total compensation of $1.6m.

- Fees for the independent BoD members remained unchanged in 2010.

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