UBS has increased salaries for its juniors, weeks after a special bonus for its younger bankers and following a bumper quarter for its dealmakers.
The Swiss bank has increased pay for first year analysts to $100,000, according to a people familiar with the matter. The entry level pay now matches salary hikes by rivals Barclays, Citigroup, Deutsche Bank, JPMorgan, Nomura and Stifel in recent weeks as banks battle to keep hold of junior talent amid a surge in work.
UBS had already offered junior bankers a one-off $40,000 bonus for analysts and associates, as well as a promotion payment for those moving to the next run of the career ladder, Financial News reported.
The new entry-level salary at UBS amounts to a $15,000 raise. Salaries for second year analysts have also been increased to $105,000 and $110,000 those in their third year.
Pay has also increased for associates — to $175,000 first years, $200,000 for those in their second years and $225,000 for third years. Directors at UBS have been given a raise to $275,000. All come into effect on 1 August.
While these are numbers for bankers based in the US, a similar percentage increase is expected for those in other locations, the people said. The raise is a global initiative and follows a successful period for its investment bank.
UBS unveiled a 68% gain within its investment banking unit for the second quarter on 20 July in its best ever three-month period for the unit. Its M&A division was the stand out performer — posting a 223% gain on the same period last year.
Increasing junior workload during a boom period for deals has pushed junior workloads into 100-hour weeks. A March presentation by a group of Goldman Sachs analysts outlining declining mental health and threats to quit. Investment banks have scrambled to increase recruitment and change working practices to stem departures.
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