Several months after a rogue trading incident forced the resignation of UBS's chief executive and an expedited overhaul of its investment bank, the firm said it would cut the investment bank's bonuses by 60% this season.
"I don't see how compensation should stay the same or go up if profitability is going south," Sergio Ermotti, the chief executive who replaced Oswald Gruebel, said yesterday. "It's not a realistic expectation."
UBS announced plans a few months ago to reduce the scale of its investment bank and invest more heavily in its wealth management unit. Dozens of senior bankers had been fleeing the bank over the past two years.
The firm has been cutting thousands around the world, most recently in Asia-Pacific, where 35 people were laid off. Four of them were research analysts in Hong Kong.
Carsten Kengeter, the head of the investment bank, won't take a bonus at all this year. He'll still get a base salary though, which will be disclosed in the spring. Last year he took home 9.3 million Swiss francs, which included a base salary of 875,000 francs.
Cuts at Lloyds (FINS)
U.K.-based Lloyds will cut almost 1,000 positions across its wholesale, risk and insurance divisions, among others. These cuts were expected as the company struggles to turn itself around.
Clarifying Clawbacks (WSJ)
At the behest of shareholders, Goldman Sachs and Morgan Stanley are going to claw back compensation not only from employees who take too much risk, but from their managers and supervisors, too.
The Next Step (Reuters)
Jefferies has done well in the areas it's focused on. But after doubling its headcount over five years, it's going to have to figure out how capitalize on that expansion.
Walking Away (On Wall Street)
A pair of financial advisers who managed $2 billion in assets at Bank of America Merrill Lynch are starting a firm of their own, a sign of the broker wars that are expected to erupt this year.
Keep in Mind (Well)
Studies show that working long hours can contribute to depression. Once you do your two-year stint as an analyst, figure out a way to get your work/life balance in check.
Growing Up (SmartMoney)
Whatever you do, do not bring your parents on a job interview. They shouldn't write your resume, either.
Speak Up (WSJ)
If you've ever frozen in a meeting or even at a party, you're not alone. Even people who think they're as smart as anyone else in the room can sometimes feel too intimidated to speak up.
Buzz Around the Office
Police in Melbourne, Australia, try to catch a nanny goat.
List of the Day: Does Your Boss Hate You?
Here are some signs.
1. You're left out of key meetings.
2. They refuse to make eye contact.
3. They second-guess everything you do.