Page 2 of 2

Special Bonus Pot

That’s what long-standing wealth manager Juerg Haller, who has held both the GMD as well as subsequently the vice-chairman title, did recently: Haller is now chairman at family-controlled rival J. Safra Sarasin, a rival to UBS. 

GMDs enjoy other perks too: they are part of the same bonus pot that top management enjoys – so-called equity ownership plans – but their lock-up is shorter. The awards, like for Ermotti and his C-suite colleagues, can be clawed back if the wider unit’s performance disappoints. 

Opaque Competition

Part of the reason the rank – not the people themselves – are likely in for more scrutiny is that the process of getting there is completely opaque and at least partly political. Other banks have similar «super MD» statuses. Goldman Sachs, for example, held onto the «partner» designation when it went public.

But unlike at the U.S. investment bank, where prospects are vetted by a committee and subjected to a series of interviews with partners around the world, UBS’ process is murky. «The GMD status just appeared, and UBS has never given a satisfactory explanation of what the criteria is,» a former UBS banker said. 

Actively Managed, But Nicely

The bank, which doesn’t disclose who is a GMD, said the criteria for the status are accessible to UBS employees via Intranet, but declined to make them available to finews.com. UBS said its GMDs are its most senior leaders, under top management with «a key responsibility to drive success for the whole group across businesses and functions, together with their teams‎.»

The Swiss bank declined to detail their role, or number. Several sources said the group is currently 100+ bankers, 60 of them in Switzerland, mainly in Zurich. The group is viewed as special within UBS, but the GMD status isn’t a shield against their stars dimming, a person familiar with UBS’ staff practices said. 

Typically, GMDs are afforded more time to look for another option at UBS if their roles are restructured: the process if somewhat more collaborative than with «regular» managing directors or other employees. «The GMDs are very actively managed, but it’s a much friendlier process than elsewhere,» the person said.