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.
Carsten Kengeter sent a memo last Thursday saying no new hires until his office provides further notice.
Additionally, according to those at the bank "all internal transfers have been put on hold. Current interns from last year who haven't been placed in a group yet are unlikely to be placed. Kengeter added that there were no exceptions for employees of any level to be hired, even if they were being hired to fill roles of employees who have departed the firm."
Update: A spokeswoman for the bank clarifies that the above is "not a hiring freeze" and that it is "typical for investments banks in normal course of business to slow hiring at this point of the year."