Carsten Kengeter

Carsten Kengeter, who finds inspiration in interesting places, has left the building (and been replaced by a Bear Stearns alum). Read more »

As those of you keeping up with the many trials and travails of UBS know, the last couple years have been fairly brutal for investment banking chief Carsten Kengeter. Pre-tax IBD profit was down 55 percent YoY through June, employees are constantly on his ass about getting paid, the comments he made in attempt to “rally the troops” re: “slashing expenses like a Jewish shopkeeper” were totally taken the wrong way, some guy perpetrated a $2 billion fraud (which was partially to blame for CK getting passed over for the promotion he was gunning for), and to top it all off, the higher-ups accepted his offer to forgo a bonus for 2011, which he would never have put out there if he thought they’d actually go for it. And now, as a thanks for all his hard work, management is publicly mulling the idea of lightening his load and paycheck, which could not come at a worse time considering he just put a down payment on a signed first-edition copy of Mein Kampf.* Read more »

UBS investment bankers yesterday learned that their bonus pool would be down by 60%, and that anyone inclined to grumble to division head Carsten Kengeter should be aware that (1) he would have none of it and (2) he himself was taking a bonus of zero, so see point (1). Rank-and-file bankers were perhaps a mite peeved, but they learned today that they have nothing to complain about compared to their formerly better-compensated elders, for whom “down 60%” or “zero bonus” would be an absolute joy when the reality is more like this: Read more »

Something you might have picked up on recently is that while UBS may possess many strengths, investment banking is not one of them. The unit’s “continued losses” were to blame for net profit falling 76% in the fourth quarter, there was the matter of their little rogue trader, and not even the higher-ups in Zurich believe in the group anymore, announcing that they’d be “scaling back on investment-banking” considerably. So it probably shouldn’t come as much of a shock that, as predicted, bonuses will be down at least 60 percent from last year, though presumably there will still be some anger and acting out to deal with from those whose compensation will take a hit. But should anyone even so much as entertain the thought of coming at i-bank chief Carsten Kengeter with their own personal shit and claims/threats they have a right mind to take that offer from RBS, know this: Read more »

As you may have heard, the last 6 to 12 to 36 months months have been somewhat trying for UBS investment bank chief Carsten Kengeter. Profits haven’t been exactly what he’d hoped for, the people of Stamford have (more or less) vowed to beat him with a sack of reeds should the Swiss so much as entertain the idea of leaving Connecticut, employees won’t stop jumping down his throat for one second about getting paid, there was the somewhat unfortunate matter of a $2 billion fraud coming to light, no one will give his team credit for their legitimate months and, to top it all off, it looks like he might not get that promotion he’s been gunning for and was hinted he was in the running for in his last annual review. Most recently, he’s been tasked with firing a whole bunch of employees, a sore point for those not thrilled about potentially loosing their jobs or seeing their colleagues let go. And so, despite all the stress he’s been going through, despite the higher-ups in Zurich riding him like Zorro, and despite things really not going his way, Kengeter dug deep and summoned the troops for a morale boosting session, the message of which he thought would’ve been a big hit. Read more »

  • 26 Sep 2011 at 10:14 AM
  • Banks

Who Wants To Be CEO Of UBS?

As you may have heard, over the weekend, UBS CEO Oswald Gruebel informed the board that as much fun as this job’s been, he’d like to quit while still ahead. Sergio Ermotti, head of European business, has been named interim CEO and while a candidate for the gig before the whole Kweku Adoboli incident, the bank isn’t set on him running the place for the long term (“He takes clients out, he’s got a nice tan, but he doesn’t have the charisma to run a place like UBS and to cope with the risk,” one analyst said in July). So, a search is underway, both internally and externally, neither scenario thrilling anyone (an outsider CEO would be tough since next year they’ll be getting an outsider CEO in Axel Weber, while an insider would be someone who was there when shit went down), and a total of one name being proposed in the last 3 days. Read more »

Carsten Kengeter, head of UBS’ investment banking division, sent a rallying message to staff on Sunday night urging them to “move forward forcefully and decisively” following the disclosure of $2.3bn of losses from unauthorised trading…Mr Kengeter e-mailed staff saying the incident should not “undermine our hard won achievements since the crisis.” [FT, related]

  • 20 Jul 2011 at 10:27 AM

UBS Puts Hiring On Ice (Update)

Back in May, UBS AG investment-banking chief Carsten Kengeter told employees that he was “done with their complaints about pay,” and that those asking why they haven’t seen a bonus in several years “just don’t get it.” While the tough love approach may have worked for some, others felt it was too much, with one senior banker noting that “You got off the call and thought ‘how can I stay here any longer?'” And yet, despite the fact that there’s been very high turnover at the bank in the last few months, which many believe has to do with the whole lack of pay situation, there are probably people out there who’d love to work at UBS. Young children in Switzerland. Recent business school graduates who’ve dreamed of living in Stamford their whole lives. Twenty year Wall Street vets looking to jump from Goldman. Unfortunately, those dreams have been dashed by Kengeter, who informed the investment bank that no one is getting, indefinitely. Read more »