Experienced private bankers at Credit Suisse in Switzerland are still leaving for rival banks, despite UBS’s introduction of retention bonuses averaging CHF 100,000. The integration of the two banks last August provided clarity for Credit Suisse employees, but it hasn’t been enough to prevent front-line staff from seeking opportunities elsewhere. Recently, a team of three private bankers in Bern made the decision to join investment firm Vontobel, while three former Credit Suisse client advisors will now be working for Reichmuth & Co. in Lucerne. Rumors of departures in the wealth management division of the acquired bank also persist.
It seems that the retention bonuses distributed by UBS have had little impact on these individuals who are determined to switch employers. On average, UBS paid experienced Credit Suisse client advisors in Switzerland CHF 50,000 in cash upfront, along with an equal amount in locked UBS shares. With numerous profiles like these across Switzerland, UBS has likely paid out a significant sum, although it appears that at least the upfront payment has not been enough to retain these employees.
When asked about the effectiveness of the retention bonuses, UBS declined to comment. However, UBS CFO Todd Tucker confirmed during the third-quarter results that selective payments will continue to be made throughout 2023 to retain key employees with client contact, as well as those in support roles. This strategy aims to ensure operational stability within the bank.
These statements contrast to some extent with remarks from UBS Switzerland’s leadership, which suggest that the motivation of Credit Suisse employees primarily comes from collaborating with the teams of the market leader and the new management. However, the presence of external forces is evident, given the personnel movements among competitors in the Swiss market.
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