REPORT: UBS has frozen investment banker pay

Swiss bank UBS is freezing investment bankers’ salaries, Bloomberg reports.

Salaries will remain frozen at least until the next quarter, at which point the firm will “revisit” the compensation structure, according to the report.

The plan will apply to the more than 5,000 people in the securities unit, including those who have been promoted, Bloomberg reports.

Earlier this month, UBS announced plans to move
about 2,500 jobs to low-cost locations such as Poland, India, China, and Tennessee, over the next year.

Credit Suisse last week said it would cut bonuses by 11%
across the board, and 36% in the global markets division after reporting its first annual loss since the financial crisis.

And over at Deutsche Bank, things are looking equally rough.

That firm reported a $7.4 billion loss for 2015. Its stock has plummeted and on Tuesday CEO John Cryan released a statement reassuring employees that things are “absolutely rock solid.”

Credit Suisse CEO Thiam has previously said that investment banks’ pay model “does not work” because of the cyclical nature of that industry.

Last October, Deutsche Bank CEO John Cryan pointed to the “significant challenges” of his firm’s “inflexible compensation culture.” Also in October, Barclays chairman John McFarlane spoke at the annual conference of the British Bankers’ Association in October and argued that bankers earned too much.

Business Insider has reached out to UBS for comment and will update if we hear back.

Read the full story over at Bloomberg.

NOW WATCH: JEFF SACHS: This is the biggest threat to the human race

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.