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