Where else can they go – Pt. 3

Posted by Marc Hodak on May 18, 2009 under Executive compensation | Be the First to Comment

UBS is dealing with an outflow of its top talent by raising pay.  Of course, since they’re constrained in paying bonuses, they will have to raise salaries, instead, increasing the risk of their business with higher fixed costs, and insuring that they pay more in a downturn than they otherwise would have.

Here is a scary comment on normally conservative Swiss sensibilities:

On Sunday, paper SonntagsZeitung reported the results of a poll that showed 75 percent of participants would vote in favor of government-imposed restrictions on management pay in Switzerland. Only 9 percent said they would vote against.

Don’t ask me why any country as attractive as Switzerland would want their only wealthy people to be foreigners.