UBS is paying its junior bankers a one-off bonus of $40,000, nearly double some of its rivals, as investment banks hike pay and perks to staff off an exodus of talent. 

The Swiss bank is set to pay the bonus on top of regular salary increases next month, according to a person familiar with the matter. The figure is double the $20,000 its local rival Credit Suisse paid its juniors as a one-off ‘lifestyle’ bonus, and ups the ante during a period of frantic recruitment for analysts and associates amid record dealflow.