The $2.475 billion purchase of UBS Banco Pactual will be paid for in cash and the assumption of liabilities, including a deferred compensation package. In 2006, former Pactual managing partner Esteves sold his shop to UBS for $1.0 billion cash and up to $1.6 billion in compensation deferred to 2011 – subject to performance conditions which were met – and rose to become the Swiss bank’s global head of fixed income.

UBS also retained $500 million in shares for Pactual and UBS employees, payable beginning on the fifth anniversary of closing. It ...