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UBS CEO Hamers Says Bonuses Will Drop If Deals Don’t Come Back

July 26, 2022, 11:13 AM

UBS AG Chief Executive Officer Ralph Hamers indicated that staff should brace for cuts in variable compensation, the latest banker to signal that pay may be hit because of a slowdown in revenue and deal activity.

Speaking on an earnings call on Tuesday, Hamers responded to a question about cost pressures by saying that lower revenue will result in lower bonus accruals. The bank reported a 14% decline in second quarter revenue at the investment bank, driven by a 57% plunge at its mergers and underwriting business as public listings and deals dried up.

US investment banks including Goldman Sachs ...