Modern bankers love the idea of risk/reward when there’s nothing but upside but as soon as the reality of their actions brings them back to earth, they suddenly want a change. It’s not much different than we saw with CEOs a few years ago who insisted on being rewarded with stock until the stock prices suffered after 9/11 and the tech bubble bursting. The problem remains that many of the previous high fliers are convinced of their value to the system and there are enough people in Washington, London and other financial centers who buy into this baloney. Let them live with the results that they generated and we’ll be fine with or without them.
A pay raise may be the last thing a bank is expected to offer these days. But UBS, the Swiss bank, is doing exactly that as it looks for new ways to compensate its investment bankers, two people who have been briefed on the changes said Sunday.
UBS is increasing the base salary of senior investment bankers after reducing many bonuses sharply and to align overall compensation more closely with other financial services jobs, like consulting, said these people, who spoke anonymously because the bank has not decided to publicly disclose the changes.