Oswald Grubel’s extreme charm effort is part desperate and part genius.
Financial News has a lot more on the details of Grubel’s big plan to revive UBS.
They say the UBS CEO has been fighting hard to repair reputional damage done to the firm during the financial crisis.
Evidence of damage:
- UBS wrote down $50 billion in US sub-prime-mortgage investments during the crisis
- When UBS announced there would be a smaller bonus pool in the first quarter of 2009, 369 bankers quit.
- In total, 1500 bankers have left since the beginning of the crisis.
- “We shouldn’t underestimate the reputational damage we engineered for ourselves,” Grübel told reporters earlier this year.
So in response, Grubel massively amped up efforts to keep clients happy.
Within the special Grubel treatment plan:
- A system that watches a clients investments so that if they seem to be winding down investments, someone can stop them.
- In Switzerland, the top 1,000 clients are to assigned senior executives who check in with them routinely.
- Grubel personally sits on UBS’s investment committee, pushing analysts to come up with sharper market calls that bankers can pitch to wealthy clients.
- Two special bonuses to certain private bankers in exchange for a promise to stick around for at least six months.
So getting this special Grubel treatment requires a fair amount of money and prestige. Grubel will only personally speak with clients who have at least Sfr50 million under management.
But exclusive or not, Grubel’s plan is working – so far. In February, UBS reported its first profit in six quarters.
UBS’s second quarter results are coming tomorrow morning.
According to Financial News,
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