The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Big pay increases at BofA/Merrill and UBS?

A rumour swept the market this week that BofA/Merrill had decided to increase the base salaries of its staff now that bonuses have become political. This is a sensitive issue, but the move – which I’m led to believe will be confirmed in April – is not surprising. Other tier 1 banks, including UBS, have, apparently done the same. “My mate at Merrill says people are leaving to go to tier 2 and 3 banks that are looking to upgrade,” was the way one source explained it.

UBS told the weeklyFiX that “they do not comment on compensation”; BofA/Merrill, which has had a few calls from the weeklyFiX in the past few weeks, also declined to comment.

It is a crude but necessary way of solving the bonus conundrum. Bankers have expected bonuses as part of their comp. This structure – which has been used in other industries to eliminate a bonus culture – solves part of that issue. But I would not want to be the communications experts explaining that to a rabid mass media.

I still think going back to a 35-hour week, having your card stamped everyday and getting overtime is a far more sensible solution.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree