UBS's $500m of Credit Suisse retention bonuses expire next year
Who received the $500m of retention bonuses that UBS paid to retain "key" Credit Suisse staff? Was it the 20 investment bankers that Financial News says UBS hired from Credit Suisse in London? Not all of them; we've spoken to MDs who didn't get them. Was it the senior technology staff who left anyway? Apparently not.
"Very few people got the guarantees," says one ex-senior Credit Suisse technologist. "They're so full of caveats, they're not worth much anyway," says one ex-Credit Suisse director who didn't get one.
Speaking yesterday, UBS CFO Todd Tuckner, said the retention bonuses have gone to, "key client-facing personnel, but also key middle and back office personnel."
Despite the claims of heavy caveats, the guarantees might not be as worthless as they seem. UBS isn't commenting, but insiders at the bank say the payments have a dual vesting schedule: 50% vested in September, three months after the Credit Suisse-UBS deal was closed; another 50% closes in September 2024.
If things don't work out at UBS, the implication is that the ex-Credit Suisse staff will be free to leave in September 2024.
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