Top Firm CEO Becomes First To Forgo 2010 Bonus

UBS CEO Oswald Gruebel has become the first big banking boss to forego a bonus in 2010.

In an interview with Dow Jones Newswires last week, Gruebel refreshingly admitted: 'I'm forgoing a bonus because I was not in a position to add value for our shareholders - our share price ended 2010 at nearly the same level as it began the year'.

UBS said in a statement:

'Based on the level of profitability achieved by the firm, the improvement in the firm's results compared with 2009, and the considerable progress made toward the achievement of UBS's medium-term strategic goals, Mr Gruebel would be contractually entitled to a bonus.

However, as in 2009, Mr Gruebel has decided to forgo his bonus for 2010. He wants to make further progress towards achieving the long-term goals set out in the firm's strategy and therefore create further value for shareholders, as expressed in the firm's share price. The fact that the share price did not increase in 2010 has led to Mr Gruebel's decision.

His base salary is the same as that at the time he took up his position in February 2009. At CHF 3m ($3.24m), it remained unchanged in 2010'.

In the meantime, Bloomberg reports that MF Global has agreed to pay CEO Jon Corzine a $1.5m retention bonus if he remains with the firm on 31st March, 2014. Bearing in mind Corzine is reportedly worth around $300m, however, a $1.5m retention is unlikely to keep him at the firm unless he is enjoying it.

Finally, The Wall Street Journal reports that Ken Chenault, the CEO over at American Express, received a $16.8m compensation package for his troubles in 2010.

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