Maybe they can use some of this money to pay down all of that debt...
Bloomberg is reporting that UBS Group AG's investment bank is allocating its largest bonus payouts to its highest earners and - in an unusual deviation - its youngest employees - i.e. millennials.
Of course, these millennial employees haven't exactly earned these bonuses - instead, the bank says they're meant as an enticement to keep its brightest young people from fleeing to Silicon Valley. In 2016, the bank's bonus pool shrank by 17%, to 2.9 billion francs ($3 billion) - meaning that it's decision is virtually guaranteed to engender resentment among more senior employees, who in turn might be less willing to mentor their younger, entitled, colleagues.
Bloomberg claims the strategy is becoming an industry standard, even as bonus pools are flat or shrinking (particularly if you work on a trading desk) across the industry (though investment banking bonus pools increased slightly last year. UBS informed its staff about the payouts on Feb. 7, BBG's sources said.. The company declined to comment.
To be sure, some banks have chosen to go a different way: Barclays told its investment bankers that it'll sharpen divisions in bonuses, raising pay for the top earners while cutting pay for the weakest earners.
Andrea Orcel, head of UBS’s investment bank, said in an interview in December that 2017 would be a “tricky year" for compensation, but that his company had done slightly better than a year earlier. Credit Suisse, UBS's biggest rival, said it increased pay somewhat.
Meanwhile, average performers may see no increase as investment banking pay falls across the industry, one of the people said.
To be clear: UBS is creating an environment where they're reinforcing the "everybody deserves a gold star" mentality that many members of the youngest working generation have been raised with, something that will likely only reinforce their sense of entitlement.
We imagine they've never seen this video...
What's next? "Flexible" hours that allow millennials to show up hungover at 10:45 am?