
Julius Baer Seeks to Cut Bonuses of Bankers With Risky Books
The amount that advisers will see their pay docked varies depending on factors such as the type of transaction and the type of market involved, the people said, asking not to be named discussing remuneration. The change is pending regulatory approval, one of the people said.
The move comes as the bank's new Chief Executive Officer Stefan Bollinger and Chairman Noel Quinn seek to reset the Swiss bank and put it on a path for growth after a string of missteps, including running up a $700 million exposure to Rene Benko's real estate empire.
At an investor event in London last month, Bollinger said the bank was reviewing the compensation model with the aim to better align relationship managers' incentives with the interests of the bank and its shareholders.
'We want to incentivize the RMs to focus predominantly on long-term sustainable growth and therefore we will be very focused on the quality of net new money,' he said.
A Julius Baer spokesperson said the changes, which are pending board approval, would 'preserve the essence of our framework, as we pay for performance and want to attract the best talent.'
Wealth managers have different compensation models but often incentivize bankers through bonus payments that are tied to new assets they bring in.
In June, Baer unveiled fresh targets and reintroduced a goal for net new money, which Bollinger stressed was underpinned by strengthened risk management. 'Risk management is my DNA, and I will be laser-focused on this,' Bollinger said.
In its interim earnings update in May, the bank announced that Ivan Ivanic was taking over as Chief Risk Officer from Oliver Bartholet, who was retiring. It also said the executive board would be strengthened by a new compliance officer role, to be announced in due course.
(Adds need for board approval in 6th paragraph.)
More stories like this are available on bloomberg.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
28 minutes ago
- Time of India
Adani Group shelves super app ambitions amid mounting losses, internal strain
Academy Empower your mind, elevate your skills The Adani Group has scrapped its plans to launch a consumer-facing super app , Bloomberg reported citing sources aware of the decision comes after the Gautam Adani-led conglomerate reportedly faced mounting financial losses and internal disagreements, the report in December 2022, Adani One was developed by Adani Digital Labs under Adani Enterprises Ltd. Initially designed as a travel-focused platform, the app allowed users to book flights, hotels, and access services at Adani-operated the 12 months ending March 2024, it facilitated transactions worth ₹750 crore ($90 million), according to the company's annual its narrow service base, the group had ambitious targets. It aimed to reach nearly 500 million users by the end of the decade. However, the app currently has only about 30 million users, as per a Bloomberg report dated July shelved initiative was meant to be similar to offerings by Tata Neu and Reliance Jio


Mint
an hour ago
- Mint
Tally of Microsoft Victims Surges to 400 as Hackers Capitalize on SharePoint Flaw
(Bloomberg) -- The number of companies and organizations compromised by a security vulnerability in Microsoft Corp.'s SharePoint servers is increasing rapidly, with the tally of victims soaring more than six-fold in a few days, according to one research firm. Hackers have breached about 400 government agencies, corporations and other groups, according to estimates from Eye Security, the Dutch cybersecurity company that identified an early wave of the attacks last week. That's up from roughly 60 based on its previous estimate provided to Bloomberg News on Tuesday. The security firm said that most of the victims are in the US, followed by Mauritius, Jordan, South Africa and the Netherlands. The National Nuclear Security Administration, the US agency responsible for maintaining and designing the nation's cache of nuclear weapons, was among those breached, Bloomberg reported earlier. The hacks are among the latest major breaches that Microsoft has blamed, at least in part, on China and come amid heightened tensions between Washington and Beijing over global security and trade. The US has repeatedly criticized China for campaigns that have allegedly stolen government and corporate secrets over a period spanning decades. 'We estimate that the real number might be much higher as there can be many more hidden ways to compromise servers that do not leave traces,' Eye Security's co-owner Vaisha Bernard said in an email to Bloomberg News. 'This is still developing, and other opportunistic adversaries continue to exploit vulnerable servers.' The organizations compromised in the SharePoint breaches include many working in government, education, and technology services, Bernard said. There were smaller numbers of victims in countries across Europe, Asia, the Middle East and South America. The security flaws allow hackers to access SharePoint servers and steal keys that can let them impersonate users or services, potentially enabling deep access into compromised networks to steal confidential data. Microsoft has issued patches to fix the vulnerabilities, but researchers cautioned that hackers may have already got a foothold into many servers. Microsoft on Tuesday accused Chinese state-sponsored hackers known as Linen Typhoon and Violet Typhoon of being behind the attacks. Another hacking group based in China, which Microsoft calls Storm-2603, also exploited them, according to the company. The Redmond, Washington company has repeatedly blamed China for major cyberattacks. In 2021, an alleged Chinese operation compromised tens of thousands of Microsoft Exchange servers. In 2023, another alleged Chinese attack on Microsoft Exchange compromised senior US officials' email accounts. A US government review later accused Microsoft of a 'cascade of security failures' over the 2023 incident. Eugenio Benincasa, a researcher at ETH Zurich's Center for Security Studies who specializes in analyzing Chinese cyberattacks, said members of the groups identified by Microsoft had previously been indicted in the US for their alleged involvement in hacking campaigns targeting US organizations. They are well known for their 'extensive espionage,' he said. It's likely that the SharePoint breaches are being carried out by proxy groups that work with the government rather than Chinese government agencies directly carrying out the hacking, according to Benincasa. Private hacking companies in the country sometimes participate in 'hacker for hire' operations, he added. 'Now that at least three groups have reportedly exploited the same vulnerability, it's plausible more could follow,' he said. China is against all forms of cyberattacks and cybercrime, the Chinese Embassy in Washington said in a statement on Tuesday. 'We also firmly oppose smearing others without solid evidence,' the embassy said. 'We hope that relevant parties will adopt a professional and responsible attitude when characterizing cyber incidents, basing their conclusions on sufficient evidence rather than unfounded speculation and accusations.' According to Microsoft, the hacking group Linen Typhoon was first identified in 2012, and is focused on stealing intellectual property, primarily targeting organizations related to government, defense, strategic planning, and human rights. Violet Typhoon, first observed in 2015, was 'dedicated to espionage' and primarily targeted former government and military personnel, non-governmental organizations, as well as media and education sectors in the US, Europe, and East Asia. The hackers have also used the SharePoint flaws to break into systems belonging to the US Education Department, Florida's Department of Revenue and the Rhode Island General Assembly, Bloomberg previously reported. More stories like this are available on


Time of India
an hour ago
- Time of India
India's top LNG importer Petronet seeks $1.4 bn local loan
Petronet LNG is seeking a ₹120 billion ($1.4 billion) loan to fund a petrochemical plant in Dahej and an LNG terminal in Gopalpur. SBI Capital Markets is advising the deal, with Axis Bank, SBI, and Union Bank likely participants. If approved, it would be among India's biggest rupee loans this year, diversifying Petronet's earnings beyond LNG. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's largest importer of natural gas Petronet LNG Ltd. is seeking a loan of at least 120 billion rupees ($1.4 billion) for a new petrochemical plant and an LNG terminal , according to people familiar with the lenders including Axis Bank State Bank of India and Union Bank of India are considering to join the facility, which is among the company's largest fundraising exercises, said the people, who asked not to be identified discussing private matters. The borrower is seeking bids from banks in groups or individually, they said, adding that SBI Capital Markets has been appointed as adviser for the facility for triple-A rated Petronet comes at a period of muted activity for India's loans space, where bank lending grew 9.5% as of June 27, the lowest growth rate since March 2022, according to the latest data from the Reserve Bank of India. If the financing goes through, it would be one of the biggest local currency loans for the country this year, according to Bloomberg-compiled for Axis Bank , Petronet, SBI, SBI Capital Markets and Union Bank of India didn't immediately reply to emails from Bloomberg News seeking from the loan will partially fund the construction of a new petrochemical complex in Dahej, located in the southwest coast of Gujarat in India, the people said, adding that it will help diversify the company's earnings beyond the LNG space. The project is estimated to cost 206.85 billion rupees, according to the company's New Delhi-based firm is also setting up a separate five million tons land-based LNG import terminal at Gopalpur, located on the east coast in latest loan could carry a tenor of more than 10 years, the people said. The pricing could be lower than SBI's one-month marginal cost of funds based lending rate of 7.95% currently, a benchmark gauge of local currency borrowings, two of the people said.