UBS AG to increase yearly bonus payments to Asian investment bankers- sources

By Nicel Jane Avellana

Jan 16, 2014 11:37 PM EST

Sources told Bloomberg that UBS AG is increasing the yearly bonus payments that it gives to Asian investment bankers by around 10% for 2013 as the lender gets more revenues from arranging stock and bond sales. One of the sources said that although the bonus pool has gone up 10%, the top bankers will get more bonuses and others less. The people knowledgeable about the matter spoke on the condition of anonymity since decisions about compensation are confidential, the report said.

The sources said that star Asian investment bankers can expect a total compensation of over $2.5 million. The compensation includes salaries and bonuses. Managing directors can expect to receive anywhere from $1 million to $1.5 million, the report said.

Matthew Grounds oversees the Asian investment banking operations of UBS. Bloomberg data showed that it was the Number 1 manager in the region last year as far as equity sales is concerned. The bank garnered the top rank for the first time in five years even as it also nearly doubled the number of offerings of high-yield bonds it arranged, the report said.

This week, UBS AG Chief Executive Officer Sergio Ermotti denied rumors that the largest lender in Switzerland will be divesting its investment banking operations in order to meet regulators' capital requirements, the report said.

One of the sources said that fees stemming from managing high-yield bond sales rose twice last year compared to the figures the year before. The person added that like last year, the bonus will be divided in such a way that managing directors would be able to get 40% in cash and 60% in stock options.

Citing data from New York research firm Freeman & Co, the report said that the investment banking fees paid to UBS in the Asian region excluding Japan went up 13% to $506 million in 2013, fueled by the lender's equity capital markets operations.

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