UBS CEO Sergio Ermotti Earns 14.4 Million Swiss Francs in 2023, UBS' Executive Board Gets 140.3M

UBS CEO Sergio Ermotti's Successful Return

In the year 2023, UBS CEO Sergio Ermotti made a notable comeback, earning a substantial 14.4 million Swiss francs ($15.9 million). This followed his surprise return at the helm of the Swiss banking giant, in the wake of its takeover of struggling rival Credit Suisse.

Ermotti's Second Stint as CEO

In late March of 2023, UBS announced the return of Sergio Ermotti for a second spell as CEO, succeeding Ralph Hamers. Ermotti had previously served as CEO from 2011 to 2020. His return came at a crucial time as UBS undertook the mammoth task of integrating Credit Suisse's business.

Compensation Details

According to UBS' annual report published in the same year, Ermotti's predecessor, Ralph Hamers, had earned 12.6 million Swiss francs in 2022, his last full year as CEO. The figures encompassed both base and variable compensation. Furthermore, the bank's executive board collectively received a generous 140.3 million Swiss franc pay package in 2023, representing a significant increase from the previous year's 106.9 million francs.

Bonuses and Cost Reduction Efforts

Additionally, UBS disclosed that bonuses paid to employees at the new combined bank totaled $4.5 billion, with the majority being disbursed in cash. This marked a 14% reduction compared to the previous year's aggregate pool of $5.3 billion for the combined entities, as UBS focused on cost-cutting efforts as part of the integration of Credit Suisse.

Financial Performance

Despite reporting a second consecutive quarterly loss due to integration costs, UBS continued to deliver strong underlying operating profits. Remarkably, UBS shares saw a significant gain of more than 52% since Ermotti took the reins on April 5, 2023.