Curious if more tenured folks on this thread have any insights as to what's happening to senior banker stock comp at CS? I've lived through the 2008 GFC and I knew some really old Lehman bankers who were at Barclays/Nomura who were still working in their mid 50s / early 60s cause their entire 401k was in Lehman stock...apparently the lessons from Enron (which wasn't that long ago before GFC) went unheeded.
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as far as I know several are now down millions..
They’ve lost millions
The good news is that it isn’t a complete wipe out given the terms of the merger. It’s likely that outstanding comp will continue to vest, etc.
However it’s now worth what UBS is paying for it, i.e. a fraction of what it was a few days ago…
Wealth wipe out really. Fould be a nice call option on UbS stock performance for those who stay onboard, but will be hard to be made whole given the wash that CS stock has taken
Heard it’s worth $1 monopoly dollar
For bankers who had deferred comp in invested company stock, that sucks.
But in your original example, you said the former Lehman bankers had their entire 401k in their bank stock? Meaning they had a choice of what to invest in and they choose to keep it on company stock?
Well in that case, a fool and his money are soon parted. If you’re an investment banker and cannot understand basic investing and diversification principles, then you will eventually go broke no matter what.
Swiss regulator just asked to stop all deferred comp payments.
Not sure if that means wipe out or just withhold for the foreseeable future…
Isn't everyone at CS (juniors included) on deferred comp now because of the bonus installments?
Only applies to bonuses pre 2022, totals around 3bn
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