* UBS wanted to avoid conflict of interests
* Amount to be revealed in UBS 2009 report
ZURICH, Sept 27 (Reuters) - Swiss bank UBS AG agreed to compensate Oswald Gruebel for options from former employer Credit Suisse Group AG he sacrificed to avoid a conflict of interest when he joined as chief executive.
"UBS and Mr Gruebel came to an agreement that a return (to cover the Credit Suisse options) made sense in terms of corporate governance and a clean break," a UBS spokesman said in response to an article in Swiss Sunday paper Sonntagsblick.
UBS named Gruebel, who masterminded a turnaround at Credit Suisse, as CEO in February, as the bank sought to end a run of crises.
In return, UBS would compensate Gruebel for the sacrificed options on the basis of their value at the time of his appointment as UBS CEO, the spokesman said.
The amount of the compensation would be announced in the 2009 annual report, as was standard practice at UBS, he added.
Swiss banks have been at the centre of a fierce debate on executive pay in Switzerland after UBS received a state bailout last year.
Gruebel said on Friday new capital rules could put Switzerland's financial industry at an international disadvantage as it struggles to rebrand itself after bank secrecy was relaxed. (Reporting by Jason Rhodes; Editing by David Holmes)