FACTBOX - UBS reins in compensation for top executives

(Reuters) - Swiss bank UBS (UBSN.VX) axed bonuses for top executives on Monday and said it would introduce a more transparent pay system in the most far-reaching changes on pay at a top European lender during the credit crisis.

Below are the main points of the new compensation model

* UBS to axe 2008 variable compensation for Chairman Peter Kurer, CEO Marcel Rohner and the other board members.

* UBS chairman will no longer get any variable compensation, only a fixed-base salary in cash and a number of shares restricted from sale for four years.

* The bank will also reduce 2008 bonuses for all managers and for specific employees. The size, composition and allocation of the variable compensation for 2008 will be discussed with the Swiss Federal Banking Commission after year-end results.

* As of 2009, UBS will hold a large portion of managers' variable compensation, cash and equity, in a reserve and pay it out only if the results of UBS warrant it.

* Board members will receive a fixed salary and variable compensation in cash and equity. A large portion of the variable component will be held back and fully paid out only if UBS achieves good business results in future years.

* UBS is introducing a bonus/malus system for variable compensation, with payouts subtracted in the case of poor results.

* A maximum of one-third of the annual variable cash compensation will be paid out. The larger part of it will be held in an escrow account and kept for future performance. If UBS achieves a loss, the cash balance will be reduced.