Keeping up with the Joneses.
UBS is boosting base salaries for investment bankers to retain key employees and help align pay with competitors, said three people with knowledge of the plan.
The average raise for employees in its advisory and trading businesses will be about 9%, one of the people said. Some employees may get as much as 25%, two of the people said. UBS expects to keep total compensation, including bonuses, unchanged if business conditions remain the same, one of the people said.
UBS, which last year announced 10,000 job cuts and its exit from most debt-trading businesses to boost profitability, revamped its compensation structure across the entire bank in February, paying some bonuses in bonds that only vest after five years and can be wiped out if the firm has a capital shortfall.
Average total compensation for senior employees at UBS trailed U.S. competitors including JPMorgan and Morgan Stanley in 2012, according to London-based salary data provider Emolument.
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