The CEO’s unexpected return to UBS earned him $15.9 million

Sergio Ermotti, the CEO of UBS, received a salary of 14.4 million Swiss francs (equivalent to $15.9 million) in 2023, marking a significant development following his unexpected return to lead the Swiss banking giant. This surprise reinstatement came in the wake of UBS’s acquisition of struggling competitor Credit Suisse.

In a late March announcement, UBS revealed Ermotti’s reappointment for a second term as CEO, succeeding Ralph Hamers effective April 5 of the preceding year. Ermotti’s initial tenure at the helm of UBS spanned from 2011 to 2020, showcasing his deep familiarity with the organization.

Comparatively, Hamers, during his final full year as CEO in 2022, earned 12.6 million Swiss francs, as disclosed in UBS’s latest annual report. These compensation figures encompass both base salary and variable bonuses, reflecting the intricate structure of executive remuneration.

Executive Compensation and Performance: Driving UBS Forward

Furthermore, the aggregate pay package for UBS’s executive board in 2023 amounted to a noteworthy 140.3 million Swiss francs, demonstrating a substantial increase from the previous year’s total of 106.9 million francs. This rise underscores the board’s commitment to rewarding leadership performance and driving the bank’s strategic objectives forward.

Additionally, UBS disclosed that bonuses disbursed to employees within the newly combined entity totaled a staggering $4.5 billion, with a predominant portion distributed in cash. Despite this substantial sum, there was a notable 14% reduction compared to the combined entity’s bonus pool in 2022, reflecting UBS’s concerted efforts to streamline costs amidst the integration process with Credit Suisse.

Although UBS reported a second consecutive quarterly loss due to integration-related expenses, the bank continues to deliver robust underlying operating profits, highlighting its resilience amid transitional challenges.

Since assuming leadership on April 5, 2023, UBS CEO Sergio Ermotti has overseen a remarkable uptick in UBS shares, which have surged by over 52%. This upward trajectory signals investor confidence in Ermotti’s leadership and the bank’s strategic direction under his guidance.