More to come. Citi, Merrill (BoA), Morgan Stanley, etc., are all sure to follow suit due to political pressure, not least from New York Attorney General Andrew Cuomo. This is good news, particularly the UBS plan, which features the following:
Starting from 2009, top managers’ bonuses will be blocked for at least three years instead of being paid immediately and executives will receive variable pay if UBS results warrant.
Leave it to the Swiss to do the sensible thing. Let’s see if the American banks adopt this model. This is a great first step.