Phantom solution

Could “phantom equity” be the solution to the problem of how to incentivise people working within financial supermarkets? UBS certainly hopes so. The Swiss group consists of a wealth management unit, an investment bank and an asset management arm. At present, employees receive a large chunk of their remuneration in the form of UBS stock. But that’s a blunt motivational tool. If the investment bankers mess up - as they did with their credit bubble bets - that drags down the value of everybody’s ...