UBS is to review the salaries of its employees and middle managers covered by the Agreement on Conditions of Employment for Bank Staff and to make individual adjustments effective 1 March 2008. The total payroll available will be increased by 2.5%. The adjustments will be made on an individual basis related to function and performance. All employees will also be eligible for inclusion in the performance and results-based bonus process.

The rise in the total payroll was agreed at this year's salary negotiations between employer representatives and the Employee Representation Committee at the end of October. As no agreement could be reached on the allocation scheme put forward by the Employee Representation Committee, the Swiss Association of Bank Employees and the Swiss Association of Commercial Employees joined for another round of negotiations in mid-November. In this second round, UBS insisted that this year it would continue to make adjustments on solely an individual basis related to function and performance as it has done for many years now.