UBS has just unveiled its annual report. As we reported on the release of its Q4 results, pay is now on a par with Goldman Sachs, front office headcount in UBS's investment bank has been falling and its compensation ratio remains stubbornly high. This is what else is buried in the annual report...
1. UBS is promoting internally rather than hiring externally
Last year 50% of all 'new' hires were actually existing UBS employees. We strongly suspect that many of the genuine new hires will have come into UBS's graduate programs, which suggests that it's easy to get into UBS as a junior - but a lot less easy to get in when you're experienced. At the very senior end, 71% of MD appointments were internal despite the flurry of senior hires for the investment banking division.
2. You have a near 50% of gaining a full-time job as an intern
UBS hired 476 graduates last year. However, it took on 991 interns. That's a 48% conversion rate.
3. Sign-on bonuses are still possible
In 2013, UBS spent CHF18m on sign on payments for 165 people. This year, it spent CHF20m on payments for 162 people - an average of CHF123k per head.
4. The number of ‘regulated employees’ is on the rise
The number of ‘key risk takers’ – namely those individuals within the organisation who fall under the more onerous regulatory pay demands – is on the rise. In 2013, there were 543 people, a figure that increased to 615 last year. Coincidentally, average pay remained the same – at CHF1.9m – 70% of which was bonuses.
5. Bonuses across UBS have shrunk
Beyond the investment bank, most UBS bonus payments were comprised of cash. Across the firm – which includes both expensive investment bankers and retail bankers – average bonuses were CHF66k for 2014, compared to CHF69k in 2013.