The Swiss private banking sector is currently engaged in a fierce competition to attract top talent from Credit Suisse (CS) and UBS. In order to entice experienced bankers, these banks are offering high salary packages. Lombard Odier, LGT, Julius Bär, and EFG International are among the domestic institutions actively recruiting from CS and UBS. Even banks like LLB and Zuger Kantonalbank have recently announced the hiring of former UBS employees.
However, as the integration of CS into UBS progresses, the opportunity to poach talent is diminishing, causing concern among medium-sized private banks. The question arises whether these banks are going too far in their growth ambitions and poaching strategies, especially considering the current rare opportunity.
Klaus Biermann, a headhunter and co-founder of executive search firm Biermann Neff, reveals that senior bankers from CS can currently receive seven-figure compensation packages. While not every banker will receive such a hefty payout, the competition for top talent is expected to drive up salaries for new hires. Customer advisors who can provide sophisticated offerings for wealthy bank clients are particularly sought after and are considered the most valuable asset in Swiss private banking. Banks like Zuger Kantonalbank are specifically targeting experienced CS bankers with diverse client contacts, as they are crucial for business with Swiss companies.
Biermann suggests that the high sums offered by private banks should be seen as investments in building the structures of the future, rather than mere expenses. However, it is unlikely that these high salaries will become a permanent fixture. UBS is also responding to the competition by offering incentives to retain capable CS bankers, while simultaneously reducing fees for customers to prevent them from seeking out new banks. This could potentially lead to a long-term downward spiral in earnings for the entire industry, which would in turn impact salaries. However, it may take some time for this scenario to materialize, and it remains uncertain whether all private banks can afford the exorbitant compensation packages they are currently offering to attract bankers from larger institutions. While a sense of unease seems inevitable, it may not be the institutions that experience it, but rather the bankers who are currently being courted.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | None |
| Currencies | None |
| Securities | None |
