UBS this morning overhauled its pay structure for board and senior management in a "cultural shift" aimed at improving the link between pay, risk and long-term performance. The development means the bank's chairman will permanently give up his right to a bonus, while the executive board and some senior executives will see bonuses deferred for longer.

Peter Kurer, chairman of UBS, will permanently give up his right to cash and stock bonuses from next year. Speaking to journalists this morning, Kurer said that from next year he would receive a fixed salary and fixed number of shares, but that the future size of this package had not yet been discussed. He currently earns a Sfr2m (€1.3m) fixed salary. His predecessor, Marcel Ospel, who stepped down in April, earned no variable compensation last year.