Sergio Ermotti Open to Prolonged Stay at UBS
ZURICH: UBS CEO Sergio Ermotti, who is overseeing the integration of Credit Suisse, expressed willingness to extend his tenure at the wealth manager.
Ermotti’s Commitment: Ermotti, who resumed his role at UBS following the acquisition of Credit Suisse on April 5, 2023, earned 14.4 million Swiss francs in 2023, surpassing his predecessor’s earnings.
Integration Process: In the UBS annual report, Ermotti and UBS chairman Colm Kelleher stated that Ermotti had pledged to remain at least until the completion of the integration process, and possibly longer.
Financial Adjustments: The report revised UBS’s net profit attributable to shareholders in 2023 from $29 billion to $27.8 billion due to changes in acquisition-date fair value estimates amounting to $1.2 billion.
Regulatory Impact: UBS noted that investigations into Credit Suisse’s 2023 collapse by Swiss authorities could lead to stricter regulations in the future.
Executive Compensation: Ermotti’s compensation of 14.4 million francs in 2023 positioned him among the top-paid executives in Swiss-listed companies, though trailing behind Novartis’ Vas Narasimhan, who received over 16 million francs. In comparison, HSBC CEO Noel Quinn received $10.6 million in 2023.
Compensation Details: UBS executives collectively received 140.3 million francs in 2023, a rise from 106.9 million in 2022. However, overall bonuses for the combined bank’s employees decreased by 14% to $4.5 billion, with the majority being distributed in cash.
Former CEO Comparison: Ermotti’s predecessor, Ralph Hamers, earned 12.6 million francs in 2022. The annual report did not disclose Hamers’ exit compensation from UBS in the previous year.
Financial Details: ($1 = 0.9059 Swiss francs)
