Even bankers and traders who have been promoted won’t see their salaries rise for now.
UBS has frozen salaries at its investment bank at least until the second quarter when it plans to revisit compensation, according to three people with knowledge of the matter.
Bloomberg News reports that even bankers and traders who have been promoted won’t see their salaries rise for now, the people said. At last count, the securities unit employed about 5,200 people full-time in locations including New York, London, Hong Kong and Zurich.
UBS joins other European banks that have cut compensation, as the plunge in oil prices and China’s slowdown cloud prospects for generating revenue. Credit Suisse and Deutsche Bank reduced bonuses after posting losses for 2015, while Barclays and HSBC both imposed a hiring freeze, with the latter suspending raises as well.
The last three months of 2015 were particularly difficult for UBS’s investment bank, led by ex-Merrill Lynch dealmaker Andrea Orcel. Buffeted by volatile markets that discouraged clients from trading, the division posted a 63% decline in profit.
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