UBS is set to raise base salaries for bankers and traders in its investment banking unit by an average 9% to align with rivals and retain employees.
According to reports, the Swiss bank could hike salary by as much as 25% for client-facing investment bankers, while other front-office staff may receive no pay rise.
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The compensation change for UBS comes as the company has scaled back its business, announcing plans last year to cut 10,000 positions, mostly in the investment bank, over the next three to five years.
The move doesn’t necessarily mean overall spending will rise at UBS, which is aiming to save CHF5.4 billion in a three-year overhaul.
UBS began informing staff of the raises this week, Bloomberg reported quoting unidentified source.
UBS’s investment bank swung to a pretax profit of CHF977 million in the first quarter, during which it cut nearly 2,461 jobs bank-wide.
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By GlobalDataOperating expenses at UBS’s investment bank fell 2% in the first quarter, but on an adjusted basis they rose 8%, to $1.85 billion, due to higher variable compensation accruals.
