UBS and Credit Suisse offer US$30,000 to incoming staff to defer start

2 min read
Americas, EMEA
Michelle Chan

UBS and Credit Suisse are offering a US$30,000 cash incentive to analysts and associates who were due to start in July if they defer their start date until February, according to internal documents and a person familiar with the matter.

The move comes as UBS is about to complete its SFr3bn (US$3.3bn) takeover of Credit Suisse after rescuing its rival in March in a deal backed by Swiss authorities. The combined bank is expected to cut thousands of jobs in an effort to rein in costs and limit activities in areas UBS doesn't want to participate.

More than 250 new starters are likely to be affected by the deferral plans, the source said. The banks are aiming to get at least half of the incoming associates and analysts that were due to start in July to take up the offer.

"We'll continue to honour your contract, but given the changing landscape, we need to amend our onboarding plans," Credit Suisse said in an email to the incoming staff, a copy of which was seen by IFR.

"For our July, September and October 2023 investment banking program we're offering a first-come, first-served voluntary deferral program. This means you can delay your start date until February 2024, and in return we'll pay you a one-off lump sum of US$30,000 or local equivalent sum," the email said.

It also held a call for the incoming staff on Wednesday and said UBS was holding an identical call at the same time for its new joiners, and people at both firms would be treated "exactly the same".

UBS and Credit Suisse declined to comment.

People can still choose to start in July as planned, but if less than half defer the banks will make a decision on how many new bankers they need, the source said. The source said many people may choose to take the cash and defer, given uncertainty about prospects at the enlarged UBS.

They will also be allowed to work at another bank during the deferral period, the source said.