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Share price drops across the sector, unfavorable performance in core businesses, tanking revenue – private banking is in a rut which is likely to translate directly to bonuses. Tschannen sees some light: the only areas that had a favorable year in Switzerland were alternative investments like private equity, hedge funds, and venture capital. These sectors are likely to see higher bonuses, according to Tschannnen.

Perks at Rothschild

The exception proves the rule: some private banks flourished last year. «Rothschild & Co had a favorable business year, which for bonuses means the general trend could be higher,» a spokesman for the Zurich-based family private bank told finews.asia.

The year had only just concluded, thus it is too early to disclose specifics on bonuses, he added.

More Charm = More Money

Bankers also face changes in how bonuses are calculated, according to Michael Bachmann, partner at search and consulting firm Witena: «We see a trend towards more holistically addressing bonuses.» Specifically, behavioral skills like team play are given higher weight, instead of a purely revenue-focused view. 

In addition, bankers are increasingly tied in with so-called long-term components, or those which are designed to encourage bonus grantees to remain with the company, as well as continuing education options and other non-financial elements. Bonuses are also typically downplayed, according to Bachmann – to avoid a public firestorm.