Banker to the (Financial) Stars Leaving BofA (BAC) for Foreign Rival
Tweet Send to a FriendGet Alerts BAC Hot Sheet
Price: $13.24 +0.23%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
Revenue Growth %: +5.4%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
Revenue Growth %: +5.4%
Trade BAC Now!
A big fish banker is reportedly leaving Bank of America (NYSE: BAC) for greener pastures at rival UBS AG (NYSE: UBS).
Andrea Orcel, of BofA's European banking unit, said he'll be leaving the bank to co-head UBS's investment banking unit, according to the WSJ. Orcel will join Carsten Kengeter, who currently runs the unit by himself.
In terms of bankers, Orcel is an all-star. The WSJ notes how Orcel claimed he brought in $550 million of fees to BofA/Merrill Lynch, when the average top-producing banker might draw $25 million to $40 million in fees. On the number, Orcel is said to have gotten a $33.6 million bonus in 2008, one of the strongest M&A years on record.
Orcel is said to have advised in the $101 billion acquisition of ABN Amro by a group of banks led by RBS (NYSE: RBS).
Though no formal fee structure in banking is set in stone, bankers are said to list the number of deals they want credit for; their bosses then work on bonuses from there. In a typical large transaction, advisors are generally expected to be paid about one percent or less, with compensation moving higher on lower-sum deals.
BofA shares are down about 0.6 percent ahead of the bell Thursday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Andrea Orcel, of BofA's European banking unit, said he'll be leaving the bank to co-head UBS's investment banking unit, according to the WSJ. Orcel will join Carsten Kengeter, who currently runs the unit by himself.
In terms of bankers, Orcel is an all-star. The WSJ notes how Orcel claimed he brought in $550 million of fees to BofA/Merrill Lynch, when the average top-producing banker might draw $25 million to $40 million in fees. On the number, Orcel is said to have gotten a $33.6 million bonus in 2008, one of the strongest M&A years on record.
Orcel is said to have advised in the $101 billion acquisition of ABN Amro by a group of banks led by RBS (NYSE: RBS).
Though no formal fee structure in banking is set in stone, bankers are said to list the number of deals they want credit for; their bosses then work on bonuses from there. In a typical large transaction, advisors are generally expected to be paid about one percent or less, with compensation moving higher on lower-sum deals.
BofA shares are down about 0.6 percent ahead of the bell Thursday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Intuitive Surgical (ISRG) Jury Reaches Positive Verdict in Robot Case; Shares Rise
- Sprint (S), SoftBank Receive Final State Regulatory Approval in Proposed Deal
- Gleacher & Co. (GLCH) Reports Election of Five for Board Members
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogRelated Entities
UBS, Merrill Lynch, Bank of America
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
