UBS Bonuses Nose-Dive Below Credit Suisse and Deutsche Bank
Bonuses awarded this year to investment bankers at UBS dropped significantly below its competitors. Following a USD 1.5 billion fine for attempting to manipulate the Libor inter-bank lending rate, the results of the Swiss bank's decision to cover the cost by slashing its bankers' bonuses have become apparent.
The latest figures from Emolument.com, a bonus and salary data benchmarking site, reveal that bankers at UBS received significantly reduced bonuses compared to their counterparts at Swiss rival Credit Suisse or at Deutsche Bank. At a senior director salary on average GBP 154,369 the typical bonus received was GBP 99,683. That figure pales in comparison to GBP 211,600 at Credit Suisse, or GBP 186,246 at Deutsche Bank.
Lower-level bankers felt the pinch too, as the average VP bonus was cut to, at best, 75% of that of the same two competitors. This information reflects UBS's recent decision to cut the bonus pool for investment bankers for 2012 by a third, noticeably more than variable pay across the overall group, which was reduced by 7%.
Despite reports that UBS raised the base salary for certain bankers within its investment banking division , primarily those teams whose pay seemed to be lagging behind its rivals, it is clear that the bank has had to cut back its rewards dramatically.
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