As UBS considers a successor to CEO Ermotti, hiring hits 18 month low
In the beginning of 2019, Swiss multinational investment bank UBS ($NYSE:UBS) are starting to put a successor plan in place for current CEO Sergio Ermotti.
A CEO that began as an interim replacement for UBS' executive position after the rogue trading scandal of 2011, Ermotti is one of the the longest-serving CEO in the company's history. But, as the private bank recovers from having a third of its market value wiped out in 2018 and finds a successor, job listings and LinkedIn data gives insight to continued concern for UBS.
According to data taken from UBS' careers page, the company has been listing fewer jobs since April 2018.
On April 23, a report came out that the company's newly combined wealth-management unit had its Q1 earnings fall short of analyst expeectations. On that day, there were 3,023 job listings on the careers website. That would fall to under 2,500 by late May, experience a slight rebound for the early summer, and then crater to 1,840 positions today. In total, there was a 39.13% decrease in jobs.
Meanwhile on LinkedIn, the number of employees who claim they worked for UBS continues to climb, but at a slower rate than it did earlier in 2018. Below is the Day-over-Day percentage difference in UBS' LinkedIn employee count over time.
As shown below, the percentage increase in employees has nearly flatlined as the calendar year turns from 2018 to 2019, indicating a slowdown in people coming into the company, or people claiming they work for UBS.
Either way, combined with an overall slowdown in job listings, UBS' future seems murky as they search for a new chief executive.
Ermotti still above par on Glassdoor
Despite a worrying future for UBS, employees at the company continue to rate Ermotti above the industry average on the employer review website Glassdoor.
Currently, the average CEO at companies who list themselves as Investment Banking & Asset Management businesses on Glassdoor has an approval rating of 72%. At present, Ermotti has an approval rating of 82%, a full 10 percentage points above the average
Even more puzzling given UBS' state of affairs is its Business Outlook rating, or what current and former employees think about where the company will be in six months time. Since August 1, 2017 — about seven months before the Q1 report came out —UBS' business outlook has steadily increased from 45% to 54%, save for a September-October 2018 dip that was soon corrected in the following months.
With plenty of uncertainty for UBS' future — although ex-Bank of America executive Christian Meissner is rumored to take over the reigns — employee sentiments at the company confuse more than confirm the company's outlook.