UBS has confirmed that because of the U. S. federal grand jury indictment of former Global Wealth Management & Business Banking CEO Raoul Weil, it passed Weil’s duties on to Marten Hoekstra, deputy CEO of this UBS division, which includes about 8,200 advisors.
UBS said it has ceased to provide cross-border private banking services to U.S.-domiciled clients through its non-U.S. regulated units.
Furthermore, UBS says its new compensation model will “be more closely aligned with the value creation of the firm.” The chairman of the board is no longer bound to the same incentive system as the group executive board and will no longer receive variable compensation components.
Variable cash compensation for the group executive board (which includes the head of wealth management) is based on a “bonus/malus” system. A similar concept is effective for variable equity compensation.