UBS plans to hire 20 CEOs to boost investment banking
UBS Group plans to strengthen the top ranks of its investment bank to drive growth in coverage areas where it seeks to be more competitive.
The addition of 20 CEOs, who sit near the top of the unit hierarchy, will be done primarily in the United States and will take place over the next two to three years.
Co-leaders Robert Karofsky and Piero Novelli are also associating the unit more closely with wealth management activity and are looking to strengthen cooperation between regions after cutting lower-level jobs and reshuffling management.
The securities unit, which relies on equity trading and operations advice for Europe and Asia, has underperformed its peers in recent quarters, prompting the chief executive Sergio Ermotti said last week that the company’s performance was unacceptable.
The bank is building the first ranks of investment banking even as it withdraws managing directors from its core wealth management activities in a major overhaul initiated by new co-director Iqbal Khan.
While UBS sees the United States as a strong growth opportunity, it is also a region where the bank has struggled to keep up with its peers with larger balance sheets to bolster their case. The Swiss bank is ranked 25th among transaction advisers in the country in 2019. Former UBS chief investment officer Andrea Orcel had focused the bank on the retail, software and financial sectors. aerospace industry in the United States during his tenure.
Last year UBS split its investment bank into two segments: the World Bank and Global Markets. The new recruits would be distributed among the newly created teams in the banking division. Under the new structure, teams report to global managers, with the aim of encouraging bankers from different regions to work together on cross-border transactions that are likely to generate the highest fees.