The head of UBS, Sergio Ermotti, grabbed headlines with a significant paycheck of 14.4 million Swiss francs ($15.9 million) in 2023 following his unanticipated comeback to manage the Swiss financial behemoth during its absorption of struggling competitor Credit Suisse.
In a surprising twist revealed in late March, Ermotti was reinstated for a second tenure as CEO, assuming control from Ralph Hamers. This move came as UBS steered through the intricate process of merging Credit Suisse’s activities into its own. Ermotti, who previously led UBS from 2011 to 2020, reassumed his post on April 5.
According to UBS’ yearly report, Hamers, who served as CEO until Ermotti’s comeback, pocketed 12.6 million Swiss francs in 2022 during his final year in the position.
The disclosed sums encompass both fixed salary and variable remuneration.
In total, UBS’s management board received a collective compensation of 140.3 million Swiss francs in 2023, recording a notable rise from the prior year’s 106.9 million francs.
The bank also revealed that rewards distributed to personnel at the united body amounted to $4.5 billion, with the majority dispensed in cash. This marked a 14% decrease compared to the total fund of $5.3 billion in 2022, underscoring UBS’s efforts to manage expenses during the merging with Credit Suisse.
Despite grappling with integration costs resulting in successive quarterly deficits, UBS sustained robust underlying operational profits. Since Ermotti’s comeback on April 5, 2023, UBS stocks have surged by more than 52%, signaling investor faith in the leadership’s astute choices.
Image Source: Sergio Ermotti @ LinkedIn
