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Zürcher Kantonalbank (ZKB) maintains its image as a down-to-earth bank for the people of Zurich, away from the excesses of the international financial scene. But when it comes to bonuses, ZKB is in no way inferior to large companies: last year, ZKB paid its employees variable wages of 349 million francs.
5,000 employees came to kiss hands and received an average of 70,000 francs per person; However, as is known, bonuses are not evenly distributed: a few receive large amounts, while the majority have to be content with moderate amounts.
Lower bonuses, higher wages
In any case, banker bonuses at ZKB were a pain in the ass for Zurich politicians; After all, ZKB belongs only to the canton of Zurich. The canton has a say in pricing practices. Following the collapse of Credit Suisse and subsequent criticism of the banking business, the cantonal council applied pressure.
This is now bearing fruit: as ZKB announced, the pricing model will be adjusted for the new year. As ZKB emphasizes, all variable charges will remain at last year’s level “despite the significant increase in profits”. However, the bonus amount will not be exactly 349 million francs as last year, but will be higher. However, according to the bank, this was only due to the increase in the number of employees.
At the same time, the share of variable wages in total wages is decreasing. The fixed fee will be adjusted according to the “market level”. In bonus discussions, ZKB never tires of emphasizing that its fixed fees are lower than its competitors. ZKB staff can now look forward to pay increases!
ZKB leaders need to wait longer for money
There are also changes in the remuneration of management and “key people” in the bank. You will only receive part of the variable fee after a three-year delay. This aims to encourage managers to act in the long-term interests of the bank rather than aiming for short-term profits. To further reward long-term work, the blocked share of variable pay for this group of employees will be doubled.
The blocked share of variable wages for the general management of ZKB under CEO Urs Baumann (55) is currently 50 percent. The proportion of key personnel was increased to 30 percent.
It seems important for ZKB to emphasize that no one needs to expect financial cuts due to the new pricing model. The level of pay at all levels was checked with external experts. And we concluded that “the fee for a universal bank of the size and complexity of Zürcher Kantonalbank is market-compatible and necessary for the successful continuation of the business model.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
