UBS will pay young bankers a $40,000 bonus when they are promoted as it looks to reward its junior employees after a gruelling year of dealmaking.
The Swiss bank is set to pay the one-time bonus to global banking analysts promoted to associates on top of any regular salary increases, Bloomberg reported. It is reportedly around 30 per cent of the annual base of a newly promoted associate.
The sign-on bonus is double the amount offered by UBS rivals Credit Suisse and Wells Fargo, as it hopes to slow defections.
The decision to offer junior staff perks comes as part of a concerted push by the industry amid concerns they are working even longer hours during the pandemic.
HSBC recently announced plans to hire more junior bankers to share the workload and hike current employees’ pay in a bid to tackle burnout. JP Morgan, Goldman Sachs and Jefferies are also all increasing their headcount.
It comes after junior employees at Goldman Sachs claimed they had suffered “inhumane” treatment and workplace abuse after working up to 100 hours a week.
More than a dozen first-year analysts said they had been a victim of abuse in the workplace and have, or, considered, seeking help due to deteriorating mental health.
Since then boutique investment bank Moelis has come out and announced a $10,000 payment to “improve mental health”. It is also encouraging dealmakers to take one Saturday off a month except during active deals or client requests.
UBS was contacted for comment.