Employee benefits: variable compensation	12 Months Ended
Employee benefits: variable compensation	Dec. 31, 2022
Entity [Table]
Employee benefits: variable compensation [text block]	Note 27 Employee benefits: variable compensation a) Plans offered The Group has several share-based and other deferred compensation plans that align the interests of Group Executive Board (GEB) members and other employees with the interests of investors. Share-based awards are granted in the form of notional shares and, where permitted, carry a dividend equivalent that may be paid in notional shares or cash. Awards are settled by delivering UBS shares at vesting, except in jurisdictions where this is not permitted for legal or tax reasons. Deferred compensation awards are generally forfeitable upon, among other circumstances, voluntary termination of employment with UBS. These compensation plans are also designed to meet regulatory requirements and include special provisions for regulated employees. The most significant deferred compensation plans are described below. › Refer to Note 1a item 4 for a description of the accounting policy related to share-based and other deferred compensation plans Mandatory deferred compensation plans Long-Term Incentive Plan The Long-Term Incentive Plan (LTIP) is a mandatory deferred share-based compensation plan for GEB members for the performance year 2022. For prior performance years, LTIP was granted to senior leaders of the Group (i.e., GEB members and selected senior management). The number of notional shares delivered at vesting depends on two equally weighted performance metrics over a three- year performance period: return on common equity tier 1 (CET1) capital and relative total shareholder return, which compares the total shareholder return (TSR) of UBS with the TSR of an index consisting of listed Global Systemically Important Banks as determined by the Financial Stability Board (excluding UBS). The final number of shares vest over three years following the performance period for GEB members, and cliff-vest in the year following the performance period for selected senior management . Equity Ownership Plan / Fund Ownership Plan The Equity Ownership Plan (EOP) is the deferred share-based compensation plan for employees outside of the GEB that are subject to deferral requirements. EOP awards generally vest over three years. Certain Asset Management employees receive some or all of their EOP in the form of notional funds (Fund Ownership Plan or FOP, previously named AM EOP). This plan is generally delivered in cash and vests over three years. The amount delivered depends on the value of the underlying investment funds at the time of vesting. Deferred Contingent Capital Plan The Deferred Contingent Capital Plan (DCCP) is a deferred compensation plan for all employees who are subject to deferral requirements. Such employees are awarded notional additional tier 1 (AT1) capital instruments, which, at the discretion of UBS, can be settled in cash or a perpetual, marketable AT1 capital instrument. DCCP awards generally bear notional interest paid annually (except for certain regulated employees) and vest in full after five years. Awards are forfeited if a viability event occurs (i.e., if FINMA notifies the firm that the DCCP awards must be written down to mitigate the risk of insolvency, bankruptcy or failure of UBS) or if the firm receives a commitment of extraordinary support from the public sector that is necessary to prevent such an event. DCCP awards are also written down if the Group’s CET1 capital ratio falls below a defined threshold. In addition, GEB members forfeit 20 % of DCCP awards for each loss-making year during the vesting period. Financial advisor variable compensation In line with market practice for US wealth management businesses, the compensation for US financial advisors in Global Wealth Management consists of cash compensation and deferred compensation awards, determined using a formulaic approach based on production. Cash compensation reflects a percentage of the compensable production that each financial advisor generates. Compensable production is generally based on transaction revenue and investment advisory fees and may reflect further adjustments. The percentage rate generally varies based on the level of the production and firm tenure. Financial advisors may also be granted annual deferred compensation. These amounts generally vest over a six-year period. The annual deferred compensation amount reflects the overall percentage rate and production. Cash compensation and deferred compensation awards may be reduced for, among other things, errors, negligence or carelessness, or failure to comply with the firm’s rules, standards, practices and / or policies, and / or applicable laws and regulations. Financial advisors may also participate in additional programs to support promoting and developing their business or supporting the transition of client relationships where appropriate. Financial advisor compensation also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. Share delivery obligations Share delivery obligations related to employee share-based compensation awards were 178 m shares as of 31 December 2022 (31 December 2021: 175 m shares). Share delivery obligations are calculated on the basis of undistributed notional share awards, taking applicable performance conditions into account. As of 31 December 2022, UBS held 119 m treasury shares (31 December 2021: 149 m) that were available to satisfy share delivery obligations. b) Effect on the income statement Effect on the income statement for the financial year and future periods The table below provides information about compensation expenses related to total variable compensation that were recognized in the financial year ended 31 December 2022, as well as expenses that were deferred and will be recognized in the income statement for 2023 and later. The majority of expenses deferred to 20 23 and later that are related to the 2022 performance year pertain to awards granted in February 2023 . The total unamortized compensation expense for unvested share-based awards granted up to 31 December 2022 will be recognized in future periods over a weighted average period of 2.5 years. Variable compensation Expenses recognized in 2022 Expenses deferred to 2023 and later 1 USD m Related to the 2022 performance year Related to prior performance years Total Related to the 2022 performance year Related to prior performance years Total Non-deferred cash 2,276 (16) 2,260 0 0 0 Deferred compensation awards 364 581 945 605 754 1,359 of which: Equity Ownership Plan 202 235 437 310 250 560 of which: Deferred Contingent Capital Plan 129 219 349 245 408 654 of which: Long-Term Incentive Plan 11 32 43 30 42 71 of which: Fund Ownership Plan 21 95 116 20 54 74 Variable compensation – performance awards 2,640 566 3,205 605 754 1,359 Variable compensation – financial advisors 2 3,799 709 4,508 1,290 2,652 3,942 of which: non-deferred cash 3,481 0 3,481 0 0 0 of which: deferred share-based awards 104 62 166 122 180 302 of which: deferred cash-based awards 185 215 400 588 636 1,224 of which: compensation commitments with recruited financial advisors 29 432 461 580 1,836 2,416 Variable compensation – other 3 169 71 241 237 193 430 Total variable compensation 6,608 1,346 7,954 4 2,131 3,599 5,731 1 Estimate as of 31 December 2022. Actual amounts to be expensed in future periods may vary; e.g., due to forfeiture of awards. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 703 m in expenses related to share-based compensation (performance awards: USD 480 m; other variable compensation: USD 56 m; financial advisor compensation: USD 166 m). A further USD 88 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 4 m, related to role-based allowances; social security: USD 61 m; other personnel expenses: USD 23 m related to the Equity Plus Plan). Total personnel expense related to share-based equity-settled compensation excluding social security was USD 716 m. Variable compensation (continued) Expenses recognized in 2021 Expenses deferred to 2022 and later 1 USD m Related to the 2021 performance year Related to prior performance years Total Related to the 2021 performance year Related to prior performance years Total Non-deferred cash 2,383 (10) 2,373 0 0 0 Deferred compensation awards 405 412 817 797 624 1,421 of which: Equity Ownership Plan 183 180 363 393 184 577 of which: Deferred Contingent Capital Plan 140 158 297 299 329 628 of which: Long-Term Incentive Plan 54 19 73 50 33 83 of which: Fund Ownership Plan 29 56 84 56 78 133 Variable compensation – performance awards 2,788 402 3,190 797 624 1,421 Variable compensation – financial advisors 2 4,175 685 4,860 1,097 2,323 3,419 of which: non-deferred cash 3,858 (6) 3,853 0 0 0 of which: deferred share-based awards 106 51 157 123 146 269 of which: deferred cash-based awards 170 202 372 311 495 806 of which: compensation commitments with recruited financial advisors 41 438 479 662 1,682 2,344 Variable compensation – other 3 191 38 229 215 182 397 Total variable compensation 7,155 1,125 8,280 4 2,109 3,129 5,238 1 Estimate as of 31 December 2021. Actual amounts expensed may vary; e.g., due to forfeiture of awards. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 651 m in expenses related to share-based compensation (performance awards: USD 435 m; other variable compensation: USD 59 m; financial advisor compensation: USD 157 m). A further USD 85 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 5 m related to role-based allowances; social security: USD 64 m; other personnel expenses: USD 16 m related to the Equity Plus Plan). Total personnel expense related to share-based equity-settled compensation excluding social security was USD 641 m. Variable compensation (continued) Expenses recognized in 2020 Expenses deferred to 2021 and later 1 USD m Related to the 2020 performance year Related to prior performance years Total Related to the 2020 performance year Related to prior performance years Total Non-deferred cash 2,167 (26) 2,141 0 0 0 Deferred compensation awards 341 727 1,068 756 288 1,044 of which: Equity Ownership Plan 137 327 463 306 69 376 of which: Deferred Contingent Capital Plan 112 351 463 280 196 476 of which: Long-Term Incentive Plan 42 11 54 50 10 61 of which: Fund Ownership Plan 49 39 88 120 12 132 Variable compensation – performance awards 2,508 701 3,209 756 288 1,044 Variable compensation – financial advisors 2 3,378 713 4,091 822 2,284 3,106 of which: non-deferred cash 3,154 0 3,154 0 0 0 of which: deferred share-based awards 69 50 119 79 135 214 of which: deferred cash-based awards 133 183 316 271 467 738 of which: compensation commitments with recruited financial advisors 22 480 502 473 1,682 2,155 Variable compensation – other 3 126 94 220 181 192 374 Total variable compensation 6,012 1,508 7,520 4 1,760 2,764 4,524 1 Estimate as of 31 December 2020. Actual amounts expensed may vary; e.g., due to forfeiture of awards. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 686 m in expenses related to share-based compensation (performance awards: USD 517 m; other variable compensation: USD 50 m; financial advisor compensation: USD 119 m). A further USD 100 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 4 m related to role-based allowances; social security: USD 54 m; other personnel expenses: USD 42 m related to the Equity Plus Plan). Total personnel expense related to share-based equity-settled compensation excluding social security was USD 691 m. c) Outstanding share-based compensation awards Share and performance share awards Movements in outstanding share-based awards to employees during 2022 and 2021 are provided in the table below. Movements in outstanding share-based compensation awards Number of shares 2022 Weighted average grant date fair value (USD) Number of shares 2021 Weighted average grant date fair value (USD) Outstanding, at the beginning of the year 180,578,561 13 174,900,395 12 Awarded during the year 62,203,770 18 68,721,549 15 Distributed during the year (54,639,882) 12 (52,137,287) 13 Forfeited during the year (6,235,249) 15 (10,906,096) 13 Outstanding, at the end of the year 181,907,200 15 180,578,561 13 of which: shares vested for accounting purposes 102,364,973 107,828,979 The total carrying amount of the liability related to cash-settled share-based awards as of 31 December 2022 and 31 December 2021 was USD 43 m and USD 37 m, respectively. d) Valuation UBS share awards UBS measures compensation expense based on the average market price of UBS shares on the grant date as quoted on the SIX Swiss Exchange, taking into consideration post-vesting sale and hedge restrictions, non-vesting conditions and market conditions, where applicable. The fair value of the share awards subject to post-vesting sale and hedge restrictions is discounted on the basis of the duration of the post-vesting restriction and is referenced to the cost of purchasing an at-the-money European put option for the term of the transfer restriction. The grant date fair value of notional shares without dividend entitlements also includes a deduction for the present value of future expected dividends to be paid between the grant date and distribution.
UBS AG
Entity [Table]
Employee benefits: variable compensation [text block]	Note 27 Employee benefits: variable compensation a) Plans offered UBS has several share-based and other deferred compensation plans that align the interests of Group Executive Board (GEB) members and other employees with the interests of investors. Share-based awards are granted in the form of notional shares and, where permitted, carry a dividend equivalent that may be paid in notional shares or cash. Awards are settled by delivering UBS shares at vesting, except in jurisdictions where this is not permitted for legal or tax reasons. Deferred compensation awards are generally forfeitable upon, among other circumstances, voluntary termination of employment with UBS. These compensation plans are also designed to meet regulatory requirements and include special provisions for regulated employees. For the majority of variable compensation awards granted under such plans to employees of UBS AG, the grantor entity is UBS Group AG. Expenses associated with these awards are charged by UBS Group AG to UBS AG. For the purpose of this Note, references to shares refer to UBS Group AG shares. The most significant deferred compensation plans are described below. › Refer to Note 1a item 4 for a description of the accounting policy related to share-based and other deferred compensation plans Mandatory deferred compensation plans Long-Term Incentive Plan The Long-Term Incentive Plan (LTIP) is a mandatory deferred share-based compensation plan for GEB members for the performance year 2022. For prior performance years, LTIP was granted to senior leaders of the Group (i.e., GEB members and selected senior management). The number of notional shares delivered at vesting depends on two equally weighted performance metrics over a three- year performance period: return on common equity tier 1 (CET1) capital and relative total shareholder return, which compares the total shareholder return (TSR) of UBS with the TSR of an index consisting of listed Global Systemically Important Banks as determined by the Financial Stability Board (excluding UBS). The final number of shares vest over three years following the performance pe riod for GEB members, and cliff-vest in the year following the performance period for selected senior management . Equity Ownership Plan / Fund Ownership Plan The Equity Ownership Plan (EOP) is the deferred share-based compensation plan for employees outside of the GEB that are subject to deferral requirements. EOP awards generally vest over three years. Certain Asset Management employees receive some or all of their EOP in the form of notional funds (Fund Ownership Plan or FOP, previously named AM EOP). This plan is generally delivered in cash and vests over three years. The amount delivered depends on the value of the underlying investment funds at the time of vesting. Deferred Contingent Ca pital Plan The Deferred Contingent Capital Plan (DCCP) is a deferred compensation plan for all employees who are subject to deferral requirements. Such employees are awarded notional additional tier 1 (AT1) capital instruments, which, at the discretion of UBS, can be settled in cash or a perpetual, marketable AT1 capital instrument. DCCP awards generally bear notional interest paid annually (except for certain regulated employees) and vest in full after five years. Awards are forfeited if a viability event occurs (i.e., if FINMA notifies the firm that the DCCP awards must be written down to mitigate the risk of insolvency, bankruptcy or failure of UBS) or if the firm receives a commitment of extraordinary support from the public sector that is necessary to prevent such an event. DCCP awards are also written down if the Group’s CET1 capital ratio falls below a defined threshold. In addition, GEB members forfeit 20 % of DCCP awards for each loss-making year during the vesting period. Financial advisor variable compensation In line with market practice for US wealth management businesses, the compensation for US financial advisors in Global Wealth Management consists of cash compensation and deferred compensation awards, determined using a formulaic approach based on production. Cash compensation reflects a percentage of the compensable production that each financial advisor generates. Compensable production is generally based on transaction revenue and investment advisory fees and may reflect further adjustments. The percentage rate generally varies based on the level of the production and firm tenure. Financial advisors may also be granted annual deferred compensation. These amounts generally vest over a six-year period. The annual deferred compensa tion amount reflects the overall percentage rate and production. Cash compensation and deferred compensation awards may be reduced for, among other things, errors, negligence or carelessness, or failure to comply with the firm’s rules, standards, practices and / or policies, and / or applicable laws and regulations. Financial advisors may also participate in additional programs to support promoting and developing their business or supporting the transition of client relationships where appropriate. Financial advisor compensation also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. b) Effect on the income statement Effect on the income statement for the financial year and future periods The table below provides information about compensation expenses related to total variable compensation that were recognized in the financial year ended 31 December 2022, as well as expenses that were deferred and will be recognized in the income statement for 2023 and later. The majority of expenses deferred to 20 23 and later that are related to the 2022 performance year pertain to awards granted in February 2023 . The total unamortized compensation expense for unvested share-based awards granted up to 31 December 2022 will be recognized in future periods over a weighted average period of 2.5 years. Variable compensation Expenses recognized in 2022 Expenses deferred to 2023 and later 1 USD m Related to the 2022 performance year Related to prior performance years Total Related to the 2022 performance year Related to prior performance years Total Non-deferred cash 2,012 (9) 2,003 0 0 0 Deferred compensation awards 346 561 907 582 730 1,312 of which: Equity Ownership Plan 191 225 416 294 240 534 of which: Deferred Contingent Capital Plan 123 211 334 238 395 634 of which: Long-Term Incentive Plan 11 30 41 30 40 70 of which: Fund Ownership Plan 21 95 116 20 54 74 Variable compensation – performance awards 2,358 552 2,910 582 730 1,312 Variable compensation – financial advisors 2 3,799 709 4,508 1,290 2,652 3,942 of which: non-deferred cash 3,481 0 3,481 0 0 0 of which: deferred share-based awards 104 62 166 122 180 302 of which: deferred cash-based awards 185 215 400 588 636 1,224 of which: compensation commitments with recruited financial advisors 29 432 461 580 1,836 2,416 Variable compensation – other 3 146 72 217 230 189 419 Total variable compensation 6,304 1,332 7,636 4 2,101 3,571 5,672 1 Estimate as of 31 December 2022. Actual amounts to be expensed in future periods may vary; e.g., due to forfeiture of award s. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 680 m in expenses related to share-based compensation (performance awards: USD 457 m; other variable compensation: USD 56 m; financial advisor compensation: USD 166 m). A further USD 80 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 4 m, related to role-based allowances; social security: USD 57 m; other personnel expenses: USD 19 m related to the Equity Plus Plan). Variable compensation (continued) Expenses recognized in 2021 Expenses deferred to 2022 and later 1 USD m Related to the 2021 performance year Related to prior performance years Total Related to the 2021 performance year Related to prior performance years Total Non-deferred cash 2,136 (8) 2,128 0 0 0 Deferred compensation awards 389 399 788 767 606 1,373 of which: Equity Ownership Plan 175 174 350 374 180 553 of which: Deferred Contingent Capital Plan 134 151 285 290 318 608 of which: Long-Term Incentive Plan 51 17 69 48 32 79 of which: Fund Ownership Plan 29 55 84 56 77 133 Variable compensation – performance awards 2,525 391 2,916 767 606 1,373 Variable compensation – financial advisors 2 4,175 685 4,860 1,097 2,323 3,419 of which: non-deferred cash 3,858 (6) 3,853 0 0 0 of which: deferred share-based awards 106 51 157 123 146 269 of which: deferred cash-based awards 170 202 372 311 495 806 of which: compensation commitments with recruited financial advisors 41 438 479 662 1,682 2,344 Variable compensation – other 3 163 33 196 210 178 388 Total variable compensation 6,863 1,109 7,973 4 2,074 3,107 5,181 1 Estimate as of 31 December 2021. Actual amounts expensed may vary; e.g., due to forfeiture of awards. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 631 m in expenses related to share-based compensation (performance awards: USD 419 m; other variable compensation: USD 56 m; financial advisor compensation: USD 157 m). A further USD 77 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 5 m related to role-based allowances; social security: USD 59 m; other personnel expenses: USD 13 m related to the Equity Plus Plan). Variable compensation (continued) Expenses recognized in 2020 Expenses deferred to 2021 and later 1 USD m Related to the 2020 performance year Related to prior performance years Total Related to the 2020 performance year Related to prior performance years Total Non-deferred cash 1,948 (29) 1,920 0 0 0 Deferred compensation awards 329 704 1,034 734 277 1,011 of which: Equity Ownership Plan 131 315 446 298 67 365 of which: Deferred Contingent Capital Plan 108 339 448 271 189 459 of which: Long-Term Incentive Plan 41 11 52 46 9 55 of which: Fund Ownership Plan 49 39 88 120 12 132 Variable compensation – performance awards 2,278 675 2,953 734 277 1,011 Variable compensation – financial advisors 2 3,378 713 4,091 822 2,284 3,106 of which: non-deferred cash 3,154 0 3,154 0 0 0 of which: deferred share-based awards 69 50 119 79 135 214 of which: deferred cash-based awards 133 183 316 271 467 738 of which: compensation commitments with recruited financial advisors 22 480 502 473 1,682 2,155 Variable compensation – other 3 109 92 201 176 189 364 Total variable compensation 5,765 1,481 7,246 4 1,732 2,749 4,481 1 Estimate as of 31 December 2020. Actual amounts expensed may vary; e.g., due to forfeiture of awards. 2 Financial advisor compensation consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Consists of replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense related to the Deferred Contingent Capital Plan. 4 Includes USD 666 m in expenses related to share-based compensation (performance awards: USD 498 m; other variable compensation: USD 49 m; financial advisor compensation: USD 119 m). A further USD 88 m in expenses related to share-based compensation was recognized within other expense categories included in Note 6 (salaries: USD 4 m related to role-based allowances; social security: USD 51 m; other personnel expenses: USD 34 m related to the Equity Plus Plan). c) Outstanding share-based compensation awards Share and performance share awards Movements in outstanding share-based awards granted by UBS AG and its subsidiaries to employees during 2022 and 2021 are provided in the table below. Movements in outstanding share-based compensation awards Number of shares 2022 Weighted average grant date fair value (USD) Number of shares 2021 Weighted average grant date fair value (USD) Outstanding, at the beginning of the year 295,921 15 54,557 13 Awarded during the year 358,424 19 278,756 15 Distributed during the year (37,994) 14 (24,176) 13 Forfeited during the year (1,923) 15 (13,215) 15 Outstanding, at the end of the year 614,428 17 295,921 15 of which: shares vested for accounting purposes 174,329 116,775 The total carrying amount of the liability related to cash-settled share-based awards as of 31 December 2022 and 31 December 2021 was USD 7 m and USD 3 m, respectively. d) Valuation UBS share awards UBS measures compensation expense based on the average market price of UBS shares on the grant date as quoted on the SIX Swiss Exchange, taking into consideration post-vesting sale and hedge restrictions, non-vesting conditions and market conditions, where applicable. The fair value of the share awards subject to post-vesting sale and hedge restrictions is discounted on the basis of the duration of the post-vesting restriction and is referenced to the cost of purchasing an at-the-money European put option for the term of the transfer restriction. The grant date fair value of notional shares without dividend entitlements also includes a deduction for the present value of future expected dividends to be paid between the grant date and distribution.