REFILE-UBS investment bank co-head gets paid 13 mln Sfr

(Corrects the amount in paragraph 7 to 56 billion francs
instead of 56 million francs)

* Carsten Kengeter best-paid UBS exec in 2009

* Robert McCann gets $10 mln in shares

* Executive board bonuses total 69 mln Sfr

ZURICH, March 15 (BestGrowthStock) – UBS (UBS.N: )(UBSN.VX: ), under
fire at home over executive compensation, paid top managers a
total of 69 million Swiss francs ($65.2 million) in 2009,
Switzerland’s largest bank by assets said on Monday.

Investment bank co-chief Carsten Kengeter picked up the
biggest pay cheque at over 13 million francs, mainly in bonuses.
The unit booked a pretax loss of 6 billion francs in 2009,
against a loss of 34 billion francs the previous year.

HSBC Holdings (HSBA.L: ), Europe’s biggest bank, said earlier
this month its head of investment banking would receive 9.8
million pounds ($14.9 million).

“Carsten Kengeter’s drive, leadership and impact have
materially contributed to the turnaround of the fixed income,
currency and commodities business … and to the overall effort
to transform the investment bank as a whole,” UBS said in its
annual report for 2009.

UBS management, which received 9 million francs in bonuses
in 2008, when the bank posted the biggest loss in Swiss
corporate history, is under pressure to turn the business around

The bank was hit with 52 billion Swiss francs in credit
losses in 2008 and 2009 and its reputation has been damaged
heavily by a legal case over clients using accounts to hide
their money from the U.S. taxman.

UBS clients withdrew 56 billion francs from accounts in the
fourth quarter, eclipsing the bank’s first net profit since
Oswald Gruebel took the helm a year ago and raising concern he
is struggling to steady the ship. [ID:nLDE61802M]

Chief executive Gruebel, who voluntarily agreed to forego a
bonus when he joined UBS, received shares worth 13 million Swiss
francs to compensate for deferred awards from former employer
Credit Suisse which the turnaround specialist gave up to avoid
conflict of interests.

Merrill Lynch veteran Robert McCann, who took charge of the
UBS U.S. brokerage unit last year, got $10 million in shares to
replace pay and benefits forfeited from his former employer.

UBS paid out 73.2 percent of its total operating income to
staff in 2009. Domestic rival Credit Suisse (CSGN.VX: ) spent 45.1
percent of its net revenues on employees’ pay.

Shares in UBS traded down 0.7 percent at 0904 GMT, while the
STOXX European banks index (.SX7P: ) also dipped 0.7 percent and a
0.85 percent fall in the stock of Credit Suisse.

Investing Research

(Reporting by Jason Rhodes; Editing by Sharon Lindores)
($1=1.059 Swiss Franc)
($1=.6594 Pound)

REFILE-UBS investment bank co-head gets paid 13 mln Sfr