UBS awarded incoming co-head of wealth management Iqbal Khan $8.1 million to join from Credit Suisse, despite cuts to executive pay elsewhere at the wirehouse, according to news reports.

UBS granted the award as a “one-time replacement” payment meant to make up for deferred compensation Khan gave up by leaving UBS’ Swiss-based rival, Credit Suisse, the Financial Times writes. The payments will be doled out from 2020 to 2024 in UBS shares, according to the paper, which cited UBS’ annual report released Friday.

The company says the payment wasn’t a so-called golden hello, barred by Swiss law, but merely followed standard industry practice to compensate executives for losing deferred pay, the FT writes.

By contrast, however, UBS cut its employee bonuses by 14% in 2019, according to the paper. Outgoing CEO Sergio Ermotti saw an 11% pay cut, earning $12.9 million in 2019, the FT writes. The bank has said Ermotti is leaving this year and will be replaced by ING Group chief Ralph Hamers in November.

Credit Suisse had promoted Khan to head its international wealth management operations, and at one point he was considered a candidate to take over the helm of the firm from then-CEO Tidjane Thiam, according to the paper. The two executives, however, had a falling out last year after Khan moved into a house next to Thiam’s on Lake Zurich in Switzerland, the FT writes.

After leaving the firm for UBS, Khan had a confrontation in Zurich with private investigators hired by Credit Suisse to tail him, according to the paper. Credit Suisse’s board opted to oust Thiam last month in the wake of the scandal, the FT writes.

Khan was one of four internal candidates in the running to take over from Ermotti as CEO of UBS. Tom Naratil, who was appointed co-head of the unit in February 2018 following the merger of UBS’ Wealth Management Americas business with the Wealth Management unit, was also on that list.

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