A Fast Track for UBS Bankers
Andrea Orcel, the top investment banker at UBS, has come up with an alternative career path for the most talented among his staff. Not all may appreciate his decision.
If you want to make it to the top of a large bank you need to move step by step up the ladder. Which isn’t to everybody’s liking and which is why UBS investment banking boss Andrea Orcel has just come up with an alternative way.
In addition to the traditional career path to the sought-after managing director position at UBS, the bank has now added a fast track for investment bankers who deal with large clients only, according to a report by «Financial News» (behind paywall), which cited an internal memo at the bank.
Closer to the Client
The best client-focused relationship managers can now achieve the title of vice-chair or executive vice-chair. At this level, they will report directly to Orcel and thus influence company strategy.
The change means that the bank tries to get closer to the customers, to faster grasp their ever-changing needs and generate new business, Orcel said. He probably also intends to keep the best bankers through a faster promotion system, which in turn translates into higher pay.
Currently, UBS has five vice-chairs in the corporate clients’ business: Catherine Cai for Asia-Pacific, William Vereker and Piero Novelli for Europe, Middle East and Africa (Emea) as well as Mike Santini and Ros L’Esperance in the U.S.
New Strategy Made by Orcel
The new career path is hand-in-glove with the strategic decisions of the investment bank, which aims to forego volume for high margin. Orcel’s plan is to make the investment bank into a Ferrari, and the sports car needs a proper driver to make it worth-while.
Orcel is looking for investment bankers with good networks and ideas and a capability to put them to good use. He intends to double the pool of merger and acquisition bankers within three to five years – and with top rainmakers only.
Frustration Is Part of the Game
The decision to strengthen a perceived elite within the bank may, little surprise there, lead to more frustration for others. For those who find it hard to adapt to the stiffer breeze, it may be better to look for an alternative employment, UBS has recently let it be known.
The hiring of Marco Illy is an example for the way UBS is moving: the former head of the Credit Suisse investment bank Switzerland is one of the most experienced in his field. Illy, 60, will take charge of the Swiss investment bank of UBS in December.
