UBS Is ‘Fairest’ Sharing M&A Fees With Its Bankers, Survey Says

UBS Group AG and Credit Suisse Group AG are the most generous to their London senior staff among investment banks, as ranked by the ratio of average director bonuses to mergers and acquisitions revenue, according to Emolument.com.

Rothschild ranked third in the survey of 1,077 directors, with bonuses measured as a percentage of total M&A transactions in 2014, the salary benchmarking site said in an e-mailed statement on Wednesday. Emolument ranked Goldman Sachs Group Inc. last in the ten-bank ranking of “employer fairness.”

“The relationship between earnings and bonuses is far from linear,” Emolument said in the statement. “Some institutions making less than their competitors still decide to share a higher proportion of income with its employees. Credit Suisse staff are better off than most.”

At UBS, a director received an average bonus of 195,000 pounds ($290,000), with total M&A transactions valued 73 billion pounds. In comparison, Goldman Sachs awarded bonuses of 187,000 pounds, trailing UBS, even as the firm’s M&A transactions were 298 billion pounds, four times as large as its Swiss competitor’s, according to Emolument.

Directors generally rank immediately below managing directors. The survey was conducted across all staff in investment banking including M&A and capital markets.

The following is a table of average bonuses versus total transactions:

                      Average Bonus      M&A Value    Fairness
JPMorgan Chase        GBP238,000         GBP191b      6
Morgan Stanley        GBP235,000         GBP207b      8
Credit Suisse         GBP215,000         GBP86b       2
Deutsche Bank         GBP208,000         GBP146b      4
Bank of America       GBP202,000         GBP218b      9
UBS                   GBP195,000         GBP73b       1
Goldman Sachs         GBP187,000         GBP298b      10
Citigroup             GBP155,000         GBP133b      5
Rothschild            GBP141,000         GBP102b      3
Barclays              GBP128,000         GBP111b      7
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