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UBS has paid $500m in retention bonuses to retain “key” Credit Suisse staff, according to reports. However, it appears that only a select few individuals received these bonuses. The bonuses were not given to all of the 20 investment bankers that UBS hired from Credit Suisse in London, as some managing directors have confirmed that they did not receive them. Additionally, it seems that the senior technology staff who left Credit Suisse did not receive the bonuses either.
Despite claims that the bonuses are not worth much due to the numerous caveats attached to them, insiders at UBS suggest that they may hold some value. The bonuses have a dual vesting schedule, with 50% vesting in September, three months after the Credit Suisse-UBS deal was closed, and the remaining 50% vesting in September 2024. This implies that if things do not work out at UBS, the ex-Credit Suisse staff will be free to leave in September 2024.
UBS CFO Todd Tuckner stated that the retention bonuses were given to “key client-facing personnel, but also key middle and back office personnel.” However, UBS has not provided further details or comments on the matter.