Pay per head is UP at UBS

8 February 2011

1 minute read

UBS has released its fourth quarter results.

After last week's concern about the bank's small and unevenly allocated bonus pool, the compensation outcome doesn't look too bad.

Most notably, pay per head at UBS's investment bank actually increased 13% last year. With the exception of Deutsche (where it rose around 8%), pay fell everywhere else.

Despite this, UBS seems to have got people costs in the investment bank comparatively under control: the full year compensation ratio for 2010 was 56.3%, down from 115% in 2009. 146 people were made redundant in the fourth quarter and the investment bank returned to a (small) profit.

The deferrals (CORRECTION)

Contrary to what we reported originally, UBS is also being generous with its deferrals.

62% of this year's bonus pool is being paid in cash this year and only 36% is deferred - significantly less than at Morgan Stanley and Credit Suisse.

UBS compensation structure, across the group

(Click to expand)

Source: UBS

AUTHORSarah Butcher

Global Editor

Sa
Sarah, Editor, eFinancialCaree
8 February 2011
@UBS employee - thanks, you're right. The numbers were the wrong way around.
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UB
UBS employee
8 February 2011
I'm assuming you made a mistake in your calculation because it quite clearly states that CHF1,550m out of CHF4,319m of bonus expense is deferred to future periods! So this implies a deferral of just under 36% rather than your stated 62%!
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