UBS chairman Marcel Ospel saw his pay for 2007 slashed by 90 per cent after the bank racked up $18.4 billion worth of writedowns on investments in risky American mortgages.

The 58-year-old will be paid SwFr 2.5 million, down from SwFr26.6 million in 2006. In its annual report published today, Switzerland's biggest bank said that its board relied on an annual assessment and its own judgment on the "chairman's performance and contributions" when setting his compensation.

Mr Ospel had already said that he would not expect a bonus for 2007. The report said today that members of the executive board would not receive their incentive awards for last year either.

The chairman has weathered a storm of criticism from shareholders and others, who are furious that he presided over a SwFr4.4 billion net loss last year, compared to a profit of SwFr12.3 billion in 2006.

Mr Ospel last July ousted Peter Wuffli, the bank's chief executive after poor performances at UBS's hedge funds. Huw Jenkins, the head of UBS's investment bank, also stepped down and finance director Clive Standish retired. The report said that the three were paid SwFr33 million last year and were due to receive SwFr15.3 million this year and SwFr 45.3 million in 2009.

At last month's extraordinary general meeting, UBS cut Mr Ospel's proposed term of office to one year from three years. He will face re-election at the annual meeting on April 23, but he has received calls from fund managers to step down entirely. The Swiss president last month described the chairman's 2006 salary as "Pharaoh-like" and said that he should be forced to give up the cash.

UBS does not break down the pay of the executive board which, including chief executive Marcel Rohner, was SwFr39.1 million in total last year.

Under Swiss law, banks must only identify the highest-paid member of the executive board. Rory Tapner, the chief executive and chairman of UBS's Asia Pacific business, received SwFr10.3 million last year.

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