Among 30,000 and 50,000 euros. That is what the permanence of the 60 bankers that UBS has in Spainat least until the pertinent regulatory authorizations are received for the integration of the business of wealth management at Singular Bank.
An agreement that was announced two weeks ago and that implies that the private bank that he directs Javier Marin with the financial support of Warburg Pincus will manage more than €20 billion in assets and will have a strategic alliance with the rest of the businesses not acquired from the Swiss.
Last week, from the UBS headquarters in the Swiss country, an individualized letter was sent to Spanish bankers containing an offer of a retention bonus, 50,000 euros for the team leaders and 30,000 euros for the ‘low’ bankers, figures that EL ESPAÑOL-Invertia has been able to confirm with related sources. Now it is up to each banker to decide whether to sign the bonus or not.
UBS has had no choice but to come out with a very juicy retention bonus in the face of the risk of bankers fleeing to rival entities, some dissatisfied with who has turned out to be the buyer of the business and doubtful of their fit -and that of their clients- in the Singular project. Otherwise, he risked losing large volumes of portfolios and, therefore, the operation could be backed out by Marín or, failing that, the final sale price could be lowered.
Although in the official communication of the agreement none of the parties made the acquisition price public, financial sources assured this newspaper that it is around 225 million euros, payable with a fixed amount and another variable over three years, depending on the latter of the Singular’s ability to retain current UBS clients.
Bonus in two tranches
This would be a first part of the bonus (the one paid by UBS Switzerland) or a first bonus that those UBS bankers who choose to stay will receive, since there would then be a second part or a second bonus paid by Singular once such approvals are obtained. However, both UBS and Singular Bank have declined to comment.
The transaction is expected to be completed in the third quarter of 2022, after obtaining the necessary regulatory authorizations. The detail of the bonus that Marín will propose to the UBS bankers in that second phase, when he takes over the bank, has not transpired for now, although what is taken for granted is that he will be linked to maintaining a portfolio.
In a new promotional video for Singular Bank after the agreement with UBS, the Spanish bank emphasizes its intention to become thethe leading independent private bank in Spain, with a team of more than 400 people, including more than 160 bankers and agents, managing more than 20,000 million euros with 11 offices in Spain, the last one in León.
Other sources mention that there are exceptional cases within UBS, whose bonus will go outside the scheme proposed to the two subgroups of bankers, and that absolute figures of up to 60,000 euros per banker have slipped for many of them.
For their part, and as this newspaper reported exclusively, the first two executives of UBS Spain, Pablo Diaz (country head) and Fernando Fernandez (general manager), they would be the first affected by the integration into Singular Bank. They would receive compensation of approximately three million euros each for their departure if it occurs, as everything seems to indicate and is common in these corporate processes.