Nov. 27 (Bloomberg) -- Former UBS AG executives have given back about 70 million Swiss francs ($58.3 million) in bonuses after record losses forced the bank to take aid from the state.

“I would very much like to see more bonuses waived or returned in the interests of the bank,” Chairman Peter Kurer told a shareholders meeting in Lucerne today, prompting applause from the almost 2,400 investors present. “I am therefore continuing to hold discussions on this topic.”

Switzerland’s largest bank, which last month got a $59.2 billion aid package from the state and the central bank, has faced calls to reclaim compensation from managers that left the bank in the aftermath of subprime-related losses. Former Chairman Marcel Ospel and two ex-colleagues on the board offered to forgo 33 million francs in pay this week. Former Chief Executive Officer Peter Wuffli waived his entitlement to 12 million francs.

“A voluntary repayment of a small part of the unjustified bonuses is a positive gesture, but it doesn’t suffice,” said Roby Tschopp, the head of activist shareholder group Actares, which represented 70 UBS shareholders. Tschopp and other shareholders speaking at the meeting today demanded that lawsuits are filed against former managers to claim damages.

UBS rose 60 centimes, or 4 percent, to 15.40 francs in Swiss trading, valuing the bank at 45.2 billion francs. The stock has dropped 67 percent this year, compared with a 62 percent slump in the Bloomberg Europe Banks and Financial Services Index.

Reining in Pay

Kurer said the bank hasn’t found any evidence that a lawsuit against former or current senior executives would be successful, though it’s continuing investigations. Agreements with former executives on repaying bonuses don’t preclude the possibility of lawsuits, he added.

UBS posted about $48.6 billion of writedowns tied to the collapse of the U.S. subprime mortgage market, more than any other bank in Europe. Financial firms worldwide reported $970 billion of credit losses and markdowns since the start of 2007, forcing governments from Washington to Paris to Moscow to aid ailing banks and pressuring executives to limit compensation.

London-based Barclays Plc said this month it won’t pay annual bonuses to top executives, including Chief Executive Officer John Varley and investment banking chief Robert Diamond. At New York-based Goldman Sachs Group Inc., CEO Lloyd Blankfein and six deputies will forgo bonuses.

UBS shareholders today approved the sale of 6 billion francs of bonds to the Swiss government to raise capital. The securities will convert into UBS shares.

‘Rosy Picture’

“Due to market conditions, major time pressure and the fact that we have already had two capital injections within a short period, we were unable to find private investors for the extra 6 billion francs,” Kurer said. The aid package “has helped bolster confidence in UBS and the Swiss banking and financial services industry as a whole.”

UBS is seeking to stem withdrawals after clients pulled 83.6 billion Swiss francs from its money-management units in the third quarter. Kurer didn’t comment on new money flows in his speech today, only saying that clients’ assets are “secure” with UBS.

Kurer also faced criticism over comments he made at the previous shareholder meeting on Oct. 2, two weeks before the government aid package was announced.

“You painted a rosy future for us,” shareholder Rudolf Weber said today. “Everyone who had believed your positive words at that time lost a lot of money. That is not nice, Mr. Kurer.”

Kurer said he stands behind his statements and reiterated that the bank expects to post a profit for 2009.

To contact the reporters on this story: Elena Logutenkova in Zurich at elogutenkova@bloomberg.net

Last Updated: November 27, 2008 12:11 EST