UBS has slotted in an extra step on the career ladder for its Zurich investment banking analysts, creating an Associate 0 role with base pay around 155,000 francs. People familiar said this sits about 20,000 francs under what new associates previously made.
Management added the layer after deciding the jump from analyst pay to associate pay was too steep. Even so, juniors are still getting to associate status faster because UBS cut analyst tenure to two years from three in 2023. The tweak is being rolled out across the bank's European units and does not touch existing associates. UBS declined to comment.
Newly promoted bankers will stay at Associate 0 for six months, then step up to Associate 1 with base pay of 175,000 francs. Even with the lower entry, the latest Zurich associate base remains well above Switzerland's median gross salary, according to the national statistics office.
After acquiring Credit Suisse in 2023, UBS shed in excess of 20,000 full-time equivalent positions, with cuts also affecting Switzerland. The cutbacks contributed to a scenario where, in the Canton of Zurich, the count of bankers without jobs has doubled in under three years. Earlier this year, UBS ran another round of integration cuts, removing several hundred jobs across Europe, the Middle East and Africa, mostly in support functions.
Peers are rejigging pay too. Barclays said it is shifting toward a Wall Street-style mix with higher variable compensation and lower fixed salaries, while Citigroup shortened the wait for investment banking analysts to reach associate to two years from three. Switzerland remains a busy battleground, with Goldman Sachs, Bank of America, Citigroup, JPMorgan and Jefferies all active.
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Compensation and headcount are levers UBS is using as it integrates Credit Suisse and pushes for efficiency. A lower initial associate base, quicker promotions, and ongoing job reductions all tilt pay toward variable costs while keeping the talent pipeline moving. Track how UBS and rivals balance fixed versus variable pay and manage staffing as signals for margins and return targets in European investment banking.
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