The former chief executive, finance director, and head of investment banking at UBS are to be paid a total of around £44.8m despite the $18bn (£8.9bn) of sub-prime writedowns incurred on their watch at the Swiss giant, The Telegraph reports.
Peter Wuffli, the chief executive who was axed in July last year in the early throes of the sub-prime crisis, ex-finance director Clive Standish and former investment banking head Huw Jenkins - both of whom left at the profits warning in September - shared Sfr33m last year. They stand to collect a further Sfr15.3m this year and Sfr45.3m next year, in line with contractual entitlements.
The trio were responsible for UBS's fatal move into fixed income that caused the bank to post a Sfr4.4bn loss last year. Rumours are swirling that it will now have to spin off the investment banking division to protect the hugely successful wealth management operation.
A spokesman said: "UBS is committed to the integrated business model and there is no change in strategy."
GUY HANDS, THE FOUNDER OF TERRA FIRMA, is threatening to move part of his UK-based private equity group offshore in response to the latest tax rises on capital gains and non-domiciled residents, The Times reports.
In his annual review, due out today, Mr Hands gave warning that the group, which owns EMI and the Odeon/UCI cinema chain, is “concerned by the recent changes to the UK tax laws”.
The outspoken business leader said: “Such trends in UK taxation, making the UK a less competitive financial centre than it was, have caused us to review our UK activities and may result in future growth being pursued through our other European offices.”
COMMERCIAL PROPERTY PRICES could fall by up to 15% in the coming months after dropping as much in the past six months, according to a report released yesterday, The Guardian reports.
The warning comes after several big insurers closed commercial property investment funds to withdrawals to prevent panicking small investors trying to pull out money.
Rob Martin, head of property research at Legal & General investment management, said the speed of the plunge in property values was "unprecedented" in modern times but was far from over.
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