Reuters reports that the extension is meant to protect the firm's top-ranked Australian franchise, though it may infuriate other parts the firm that are getting hit with lower pay and rile shareholder groups pressing for compensation reform.
The news agency's sources say the latest UBS bonus protection plan involves nearly a dozen Managing Director-level leaders who hold the key to relationships with customers in Asia-Pacific's sixth-largest economy. Clients include billionaire James Packer, Seven Network magnate Kerry Stokes, Commonwealth Bank of Australia, Telstra and fund manager AMP.
Bankers whose bonuses are ring-fenced include Guy Fowler, head of investment banking; David Di Pilla, co-head of the industrials group; Anthony Sweetman, head of corporate advisory; capital markets co-heads Barry Sharkey and Dane Fitzgibbon; and Simon Cox, head of equity capital markets, said the sources, who didn't want to be identified as the bonus deal is not public.
The deal excludes Australia-based Matthew Grounds, who was a key negotiator for the bonus arrangement but who now has a global role as co-head of investment banking.
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