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:
Kengeter offered to give up his bonus for 2011, Mr. Ermotti said, and the bank subsequently agreed. Mr. Kengeter will still receive his base salary. For 2010, Mr. Kengeter received total compensation of 9.3 million francs, including a base salary of 875,000 francs.
That's right, UBS IBD Chief Bonus Watch '12: ZERO. If you thought he took a harsh tone last year when dealing with "spoiled banker children" who "messed this place up" and "just don't get it," just wait. Any employees preemptively considering airing grievances in his direction are advised to put a sock in it.