UBS CEO Sergio Ermotti made the news by earning a substantial paycheck of 14.4 million Swiss francs ($15.9 million) in 2023 after his unexpected return to lead the Swiss banking giant during its acquisition of troubled rival Credit Suisse.
In a surprising move announced in late March, Ermotti was reinstated for a second term as CEO, taking over from Ralph Hamers. This decision came as UBS navigated the complex task of merging Credit Suisse’s operations into its own. Ermotti, who previously headed UBS from 2011 to 2020, resumed his position on April 5.
As per UBS’ annual report, Hamers, who was CEO until Ermotti’s return, earned 12.6 million Swiss francs in 2022 during his final year in the role.
The disclosed amounts include both base salary and variable compensation.
In total, UBS’s executive board received a total compensation of 140.3 million Swiss francs in 2023, showing a significant increase from the previous year’s 106.9 million francs.
The bank also disclosed that bonuses given to employees at the combined entity totaled $4.5 billion, with most of it paid in cash. This was a 14% decrease compared to the total pool of $5.3 billion in 2022, reflecting UBS’s efforts to control costs during the integration with Credit Suisse.
Despite facing integration expenses that resulted in consecutive quarterly losses, UBS maintained strong underlying operating profits. Since Ermotti’s return on April 5, 2023, UBS shares have increased by over 52%, indicating investor trust in the leadership’s strategic decisions.
Image Source: Sergio Ermotti @ LinkedIn
