The Swiss government told investment bank UBS it may have to slash bonuses by more than 80 percent after taking state aid, the Financial Times reports.

UBS confirmed the report Thursday, Reuters reported. The bank also said it will pay its highest ranking executives entirely in deferred shares and zero cash, according to the agency which quotes people familiar with the situation.

The anonymous sources said the deferred compensation will be distributed in three annual installments. If the bank reports a loss in any year, each of those may be canceled.

UBS reported the highest losses from the credit crisis of any European bank, according to FT. The investment bank received the equivalent of $5.2 billion in capital from the Swiss government in October 16.

Investment