London search firm Sheffield Haworth has the latest on who's hiring in investment banking and who's losing bankers.
The search firm says the cause of UBS' predicament is twofold: "the Swiss government's tough compensation stance (and therefore poor bonuses) and problems hiring people of sufficiently high calibre to match those they've already got. Because of the latter, UBS has taken to promoting people internally rather than hiring from the outside."
This could affect which firms strategics hire to advise them on acquisitions or sales. For example, Sheffield Haworth notes "This year Citigroup Inc. has been the biggest hirer of senior investment bankers, accounting for more than 12% of the total - more than twice as much as its closest hiring rival, Bank of America Merrill Lynch."
For UBS, promoting from within may not be enough. - Baz Hiralal