"Golden Hello" after UBS dismissal This Julius Baer manager earns more than his CEO
A manager who previously worked at UBS receives high remuneration at Julius Baer. This practice raises questions about fairness and the impact on shareholders, especially as the bank is currently laying off employees.
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- A manager at Julius Baer received a salary of CHF 6.8 million in 2024, making him the bank's highest-paid employee.
- A large part of the sum came from a controversial "Golden Hello", which was paid to him as compensation for lost bonuses at UBS.
- The high remuneration is causing criticism, as Julius Baer is simultaneously cutting jobs and is still dealing with the consequences of the Benko case.
You don't have to be called Sergio Ermotti and be CEO of a major bank to earn a salary in the millions. A manager who was previously hardly known earned almost CHF 7 million at Bank Julius Baer last year, as "Inside Paradeplatz" writes.
Thomas Frauenlob, who was previously responsible for looking after the ultra-rich at UBS, was hired as the new Head of External Asset Managers and Family Offices at Julius Baer in 2023. In the 2024 annual report, he appeared as the highest-paid employee at the private bank, with remuneration of CHF 6.8 million last year.
"Golden Hello" is criticized
This sum exceeds the salaries of all other employees at the bank, considering that Frauenlob is at the second-highest business level.
A large part of this remuneration, around four and a half million francs, was paid as compensation for bonuses not received at UBS. This practice, known as "Golden Hello", is being increasingly criticized. It allows new employers to take over the blocked claims of managers, which ultimately burdens the shareholders.
One manager gets millions, others are dismissed
Originally, blocked bonuses were intended to ensure that managers also bear personal losses in the event of high risks. However, these risks are now being assumed by the new banks, which undermines the original intention. The almost seven million francs that Frauenlob received is open to debate, especially as Bank Julius Baer is not a huge institution with around 7,000 employees and is still dealing with the Benko faux pas.
This generous remuneration policy is in stark contrast to the redundancies currently taking place at the bank. While failed managers are being rewarded with millions, many long-serving employees are losing their jobs.
The editor wrote this article with the help of AI.
