When: Today, Thursday, February 3, 2011
Where: CNBC's "The Strategy Session" AT 12PM ET
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: WELCOME TO THE SHOW IM DAVID FABER. ALONG WITH MY COHOST GARY KAMINSKY. I WANT TO GET TO THOSE STORIES IN A MOMENT. BUT FIRST SOME BREAKING NEWS. OF COURSE AS OUR VIEWERS KNOW ITS BONUS SEASON ON WALL STREET. IN FACT MANY OF THE BIG BANKS HAVE ALREADY MADE IT KNOWN TO THEIR EMPLOYEES WHAT THEYRE GOING TO BE PAID. AND MANY OF THOSE EMPLYEES HAVE ALREADY BEEN PAID. BUT AT UBS SOME INTERESTING GOINGS ON. I CAN TELL YOU RIGHT NOW THAT UBS'S BONUS POOL FOR 2010 COMPENSATION WAS SO SMALL AS TO BE TERMED UNWORKABLE BY A NUMBER OF SENIOR EXECUTIVES AT THE INVESTMENT BANK AND HAS NOW BEEN DELAYED AS PLEAS ARE MADE TO THE UBS BOARD FOR THE POOL TO BE INCREASED ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION. UBS SENT AN INTERNAL MEMO TO ITS EMPLOYEES THIS TUESDAY A COUPLE OF DAYS AGO INFORMING THEM THAT THE NOTIFICATION OF THEIR BONUS PAYMENTS WOULD BE DELAYED ONE WEEK FROM WHAT WAS ORIGINALLY SUPPOSED TO BE FEBRUARY 9TH TO FEBRUARY THE 16TH. NOW WHILE THE MEMO CITED THE REASON FOR THE DELAY AS RELATING TO THE COMPLETION OF PERFORMANCE REVIEWS AND THE NEED FOR QUOTE HIGH QUALITY PAYMENT PROCESSES, PEOPLE CLOSE TO THE FIRM TELL ME THE REASON FOR THE DELAY WAS SIMPLY THAT THE POOL WAS NOT LARGE ENOUGH TO ENSURE THAT UBS WOULD BE ABLE TO KEEP HIGH PERFORMING EMPLOYEES. A SPOKESPERSON AT UBS CONFIRMED THE DELAY IN BONUS NOTIFICATION WOULD OFFER NO FURTHER COMMENT. NOW BONUS PAYMENTS AT UBS SCHEDULED TO BE MADE GARY MARCH THE 4TH. I DIDNT GET A LOT OF DETAIL HERE AS TO WHAT UNWORKABLE ULTIMATELY MEANS. WAS IT STRUCTURE, WAS IT SIZE, WAS IT BOTH. BUT VERY INTERESTING TO NOTE BECAUSE UBS DIDNT PAY ITS PEOPLE MUCH OF ANYTHING A COUPLE OF YEARS BACK AND MOST OF THEM STAYED. MAYBE THEY GOTTEN OVERCONFIDENT.
CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.