UBS chief’s surprise return to the Swiss banking giant bagged him a $15.9 million paycheck

UBS chief’s surprise return to the Swiss banking giant bagged him a $15.9 million paycheck

Newly appointed UBS CEO Sergio Ermotti (r.) speaks with UBS President Colm Kelleher during a press conference on March 29, 2023 in Zurich.

Arnd Wiegmann | Afp | Getty Images

UBS CEO Sergio Ermotti earned 14.4 million Swiss francs ($15.9 million) in 2023 after making a surprise return to the top spot at the Swiss banking giant following its takeover of struggling rival Credit Suisse.

The bank announced in late March that Ermotti would return for a second term as CEO, replacing Ralph Hamers from April 5 last year when UBS took on the mammoth task of integrating Credit Suisse’s business. Ermotti’s previous term ran from 2011 to 2020.

Hamers earned 12.6 million francs in 2022 in his last full year as CEO, according to UBS’s annual report published on Thursday.

The figures include total base pay and variable pay.

In total, the bank’s management received a salary package of 140.3 million francs in 2023, a significant increase compared to the 106.9 million francs in the previous year.

Bonuses paid to employees of the new combined bank totaled $4.5 billion, the majority of which was paid in cash, according to UBS.

This represents a 14% reduction compared to the total pool of $5.3 billion for the combined companies in 2022, as UBS looks to cut costs as part of the Credit Suisse integration.

Last month, the bank reported a second straight quarterly loss due to integration costs, but continued to deliver strong underlying operating profits.

Since Ermotti took over on April 5, 2023, UBS shares have gained more than 52%.

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2024-03-28 07:32:33