In recent developments, UBS's tentative interest in Credit Suisse (SIX:CSGN)'s equity sales team has led to an unconventional employment arrangement. As reported on Monday, several employees from Credit Suisse are moving to UBS, but not through traditional employment contracts. Instead, these individuals are being seconded from Credit Suisse, a move that has raised some eyebrows in the industry.
Among those seconded is James MacDonald, a Credit Suisse London MD and former executive director at JPMorgan (NYSE:JPM) for 10 years. Despite the unusual nature of this arrangement, Credit Suisse insiders familiar with the process have downplayed its significance. A CS MD on secondment to UBS stated that this was "the easiest way to do it" and "a full transfer in all but name." The alternative would have been "sitting at a dead office at Credit Suisse for weeks or months longer," the source added.
Despite this reassurance, headhunters have identified these secondments as a factor discouraging some Credit Suisse employees from making the move to UBS. This reluctance is particularly pronounced given the attractive severance payments that Credit Suisse has on offer for those choosing redundancy instead.
According to one headhunter, "Credit Suisse is offering a year's salary for every four year's service as a severance payment in London." This severance is capped at £250k, but those with significant tenure stand to receive the full amount. Faced with secondments, under which severance isn't payable, many Credit Suisse employees are opting for redundancy and taking some time off instead.
The state of relations between UBS and Credit Suisse also seems to be causing some uncertainty among employees. Some of Credit Suisse's top equities salespeople, including Tim Carswell, are understood to be considering offers from other firms rather than moving to UBS.
As the situation unfolds, it remains to be seen how these employment dynamics will influence both UBS and Credit Suisse's talent acquisition strategies and overall workforce landscape.
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