Performance management processes throughout the year support staff development, reinforce the firm’s core values and help ensure employees have the skills necessary to implement the long-term strategy of taking advantage of the global trend of wealth creation.

As UBS believes employee-manager dialog underpins good performance management and demonstrable performance is the basis for meritocracy, all employees participate in a performance management process that assesses individual achievements against specific objectives. Implemented in 1996, the performance measurement and management (PMM) process specifies expectations for behavior and actions according to (and increasing with) experience and rank.

Each employee and his or her evaluating manager agree upon specific performance objectives at the beginning of the year. In the fourth quarter, the employee’s achievements are assessed against these previously defined targets.

This performance management framework allows UBS to target specific personnel development needs. For example, in 2007, the PMM tool was used to design a training program targeted at first-level managers across the company to help them build a consistent set of management skills. The program was developed following a detailed analysis of UBS’s management competency profile in the PMM system and is a focused solution for building relevant management capabilities among this population.

The PMM process for the executive members of the Board of Directors, members of the GEB and members of the GMB is broadly the same as for other employees. Achieving the financial targets set for the divisions plays a significant role. Leadership, cross-business cooperation, strategic thinking and cross-business group contribution are also evaluated.