Switzerland’s largest bank has frozen basic salaries in its investment bank at least until the second quarter of 2016, according to internal sources.
Investment bankers across UBS have to adjust to a pay freeze, three individuals familiar with the plans told «Bloomberg» news agency. Compensation will be revisited in the second quarter of 2016, the sources revealed.
Investment banking bonuses, which traditionally make up a big share of remuneration, are not included in the freeze. A spokesman for the bank in London declined to comment on the revelations. In Zurich, there was no one available at the press office.
Despite making record profits in the billions, last year was rather disappointing for UBS, as finews.ch reported last week. And 2016 is expected to be a difficult business year for the bank.
Many Banks in Savings Mode
Across Europe, investment banks are putting the brakes on costs. According to «Bloomberg», Barclays has also frozen salaries, and HSBC recently imposed a hiring freeze.
Credit Suisse (CS) is also forced to save. At the weekend, CS CEO Tidjane Thiam announced that he would not be receiving a part of his bonus.
In addition, bonuses for the whole bank are being cut by 11 per cent. At Deutsche Bank bonuses are being reduced by 30 per cent, as reported in recent days.
