Up to 5 billion in the pot?: CS staff can expect bonuses despite bank collapse

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In the banking world, the “harvest” occurs in January: Then those in charge decide on bonuses. UBS officials can look back on a successful year, which should have had the same impact on the level of bonuses. So, do employees at Credit Suisse (CS), which was sold to UBS last year due to an emergency, also receive bonuses?

According to financial portal Tippinpoint, this will definitely be the case. UBS cannot afford to pay bonuses to its own employees and not pay bonuses to colleagues currently working in CS companies. It is about presenting the image of a unified bank. This has become even more important after UBS leadership made itself unpopular last year with statements about a “cultural filter” that CS employees would have to pass through.

Up to 5 billion for bonuses?

It is not yet clear how much the bonus pot of UBS, which will also support the bonus demands of the remaining CS employees, will be. UBS paid a total bonus of 3.3 billion francs for 2022. In CS, this figure was 1.6 billion. A total bonus pot of at least 5 billion francs is conceivable.

At the end of the third quarter, the combined bank had 115,981 full-time positions. There were probably a few fewer by the end of 2023. With the 5 billion bonus pot, an estimated 113,000 employees will receive an average variable pay of around 44,000 francs per full-time position. Last year the average was 45,000 francs at UBS and 31,000 francs at CS.

UBS will also use the bonus pot to compensate for existing fee differences between UBS and Credit Suisse. It may even be the case that the remaining CS employees receive more bonuses than the previous year. And this is for the year the bank ceases to exist. (rae)

Source :Blick