Weather     Live Markets

UBS CEO Sergio Ermotti earned 14.4 million Swiss francs in 2023 following his return to the helm of the Swiss banking giant after the takeover of Credit Suisse. Ermotti replaced Ralph Hamers in April 2022 to lead the integration of Credit Suisse’s business. Ermotti previously served as CEO from 2011 to 2020. Hamers earned 12.6 million Swiss francs in 2022 during his last full year as CEO. The executive board of UBS received a total pay package of 140.3 million Swiss francs in 2023, up from 106.9 million francs the year before.

The pay package for UBS executives consisted of base and variable compensation. Bonuses paid to employees at the combined bank totaled $4.5 billion, with the majority being paid in cash. This amount represented a 14% decrease from the previous year’s pool of $5.3 billion, as UBS aims to cut costs as part of integrating Credit Suisse. Despite reporting a second consecutive quarterly loss due to integration costs, UBS continued to deliver strong underlying operating profits.

Since Ermotti took over as CEO on April 5, 2023, UBS shares have increased by more than 52%. The bank’s performance under Ermotti’s leadership has been positive, with strong underlying operating profits despite integration challenges. UBS has been focused on cutting costs and improving efficiency as part of its integration of Credit Suisse. Ermotti’s experience as CEO from 2011 to 2020 likely contributed to his successful leadership during this challenging period.

The decision to bring Ermotti back as CEO to lead the integration of Credit Suisse’s business was a strategic move by UBS. Ermotti’s previous experience and leadership skills have been valuable in navigating the complexities of merging two major banking entities. The significant increase in the executive board’s pay package in 2023 reflects the challenging but successful efforts to integrate Credit Suisse and drive the bank’s performance.

Overall, UBS under Ermotti’s leadership has seen positive results in terms of share price performance and underlying operating profits. Despite facing integration costs and challenges, the bank has remained profitable and focused on improving efficiency. The decrease in employee bonuses compared to the previous year demonstrates UBS’s commitment to cost-cutting measures during the integration process. Ermotti’s leadership and experience have been instrumental in guiding UBS through this transition period and positioning the bank for future success.

Share.
Exit mobile version