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UBS CEO Sergio Ermotti made headlines with a hefty 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 strategic move announced in late March, Ermotti was reinstated for a second term as CEO, succeeding Ralph Hamers. This decision came as UBS tackled the complex task of integrating Credit Suisse’s operations into its own. Ermotti, who previously led UBS from 2011 to 2020, took the helm again on April 5.
According to UBS’ annual report, hamers, who served as CEO until Ermotti’s return, earned 12.6 million Swiss francs in 2022 during his final full year in the role.
The disclosed figures encompass both base salary and variable compensation.
Overall, UBS’s executive board collectively received a compensation package totaling 140.3 million Swiss francs in 2023, marking a significant increase from the previous year’s 106.9 million francs.
The bank also revealed that bonuses distributed to employees at the newly combined entity amounted to $4.5 billion, with the majority paid in cash. This represented a 14% reduction compared to the combined pool of $5.3 billion in 2022, reflecting UBS’s efforts to streamline costs amid the integration process with Credit Suisse.
Despite facing integration costs that led to consecutive quarterly losses, UBS maintained strong underlying operating profits. Since Ermotti’s return on April 5, 2023, UBS shares have surged by over 52%, reflecting investor confidence in the leadership’s strategic direction.
