Do not let it be said that we’re not accurate when it comes to estimating how much someone is paid. Back in September 2011, we suggested Kweku Adoboli would have been earning £370k at UBS. Today it emerges that he was earning £360k.
This seems extremely generous for someone who’d joined the bank only 6 years earlier, in a back office position on £45k. Adoboli didn’t even move into the front office until 2007-8. At the time of his downfall he was a director on UBS’s Delta One desk. The £360k was his total compensation for 2010 – a year in which UBS hired 2,100 people into its investment bank and paid them 13% per head more than the previous year.
UBS is suggesting that Adoboli could have cost the bank up to $12bn and that he was driven by an urge to, “increase his bonus, his status within the bank, his job prospects and his ego.”
Whilst outlandish, Adoboli’s pay wasn’t on a par with the most choking packages of the past. In 2007, Credit Suisse paid its 33 year old head of telecoms trading £4.6m and a 25 year old telecoms analyst at Dresdner earned £1m. Those days are very over.
UBS is allegedly pay generous severance packages of 4 weeks’ pay for every year of service. (Dealbreaker)
Investment banking fees have fallen 27% in Asia. There will be more redundancies there. (Finance Asia)
UBS is forever having to hire more people in China. Finding them is a challenge. (Bloomberg)
Nomura’s got some new heads of US equities. They both came from Bank of America. (Bloomberg)
London, the world’s most international banking hub, will probably have shed 100,000 jobs by the end of this year from its peak of 354,000 in 2007. In New York the industry employs 20,000 fewer people than it did before the crisis, and it is likely to lose 2,600 more jobs this year. (Economist)
The reshuffle of JPMorgan’s investment bank appears to empower its business in London. (Financial News)
It’s all better: JPMorgan’s stock has recovered from its Bruno Iksil moment. (Bloomberg)
Ruth Porat confirms that this drop in banks’ ROE is more than just a cyclical thing. (Bloomberg)
The woman who killed herself at Coq D’Argent had just attended a job interview. (Evening Standard)
What you can learn from the baboons. (PhysOrg)