UBS investment banking CEO on headcount levels, pay, and relocating staff

'This year is going to be a tough year for everyone'.

UBS’s Investment Bank President and UK CEO Andrea Orcel discusses layoffs, compensation and Brexit impact in an exclusive interview with Bloomberg Television’s Erik Schatzker.

Note: His remarks about dismissals are a shift from May, when UBS said it would eliminate more costs after the investment bank’s profit tumbled 67% in the first quarter.

Orcel says:

On staff levels

'We are exactly where we should be to face the environment that we have, to face the regulation that we have, to face the forces that we have'.

On pay

'I would not think that many people expect this year, even next year but certainly this year, to be a bumper year. This year is going to be a tough year for everyone'.

On Brexit

'We would need to consider moving a number of our employees to a European Union country. We would still have a base in the UK, but the part of the EU business that is done from London would need to be done from elsewhere'.

'The French government, the German government, a number of governments are making, if I may call it this way, a case for people to move to their jurisdiction'.

He added that the moves necessary under that scenario would be 'relevant enough' to require a “complete reassessment of our model going forward.”

On financial markets now

'Markets are still fragile, uncertain after Brexit'.

Hit the link below to access the complete Bloomberg News article:

UBS’s Orcel Signals Halt to Years of Investment Bank Cuts

Access the Bloomberg video here

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