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UBS CEO Sergio Ermotti was paid SFR 14.9 million ($16.8 million) last year, maintaining his position as the boss of Europe’s top payment bank.
Elmotti’s compensation was slightly higher than the SFR 14.4 million awarded to him in 2023.
Elmotti’s salary disclosure in UBS’s annual report on Monday occurred as the Swiss Senate narrowly supported allegations last week that restricted executive compensation to SFR5MN.
The proposal highlights how politically sensitive wages in the financial sector are in the controversial 2023 acquisition of former rival Credit Swiss UBS.
Separately, UBS external auditor EY issued a “adverse opinion” on the effectiveness of banks’ internal controls on 2024 financial reporting.
This issue relates to the weaknesses that the bank inherited when it acquired Credit Switzerland in a transaction organized by Swiss regulators.
UBS said the ongoing issues stem from the “increasing complexity” of the internal accounting and control environment and the limited time of transition efforts and showing that the post-merger controlled environment is operating effectively.
Bank Chairman Colm Kelleher has returned Elmotti to UBS for the second time following the acquisition of Credit Swiss.
Elmotti’s wages in 2024 exceed the £5.4 million received by HSBC CEO George El Hedery, and will earn Christian sewing from the Deutsche Bank boss, which costs 975 million. It was also awarded the 13.8 million euro Banco Santander executive chair, Anabotine, and 132 million euros was handed over to Unicredit Chief Andrea Orsel.
However, Elmotti’s pay is less than what he earns on his US peers on Wall Street. JPMorgan Chase increased its 8% payment from longtime CEO Jamie Dimon last year to $39 million last year. This is his biggest reward at the US Bank. Morgan Stanley said he paid Ted Pick $34 million this year as CEO.
It is also less than that of some Swiss companies. Beisant Narasimhan, chief executive of pharmaceutical company Novartis, was paid a total of 19.2mn SFR last year, for example.
Many in the industry expected Elmotti’s compensation to be much higher this year. Elmotti’s total package concluded with SFR15MN in 2023, but the bank said last year that the cap would rise to SFR20MN in 2024.
Swiss banks are not subject to the same restrictions as eurozone banks regulated by the European Central Bank.
As Switzerland is reforming in the wake of Credit Suisse’s end, strengthening scrutiny on domestic executive wages is comprehensive as it is potentially a significant increase in UBS’s comprehensive capital requirements.
The Swiss government is considering a variety of measures aimed at making the banking sector safer.
However, modest reforms have created tensions between UBS and Switzerland’s political establishment.
In a letter to shareholders published in UBS’s annual report on Monday, Elmotti and Kelleher criticized the “inappropriate public debate of information” in Switzerland, saying the planned reforms “created uncertainty as they enter 2025.”
“Excessive capital requirements or other excessive restrictions on international business will punish our diverse global presence, oppose our government’s financial sector strategy, undermine the competitiveness of the Swiss economy and increase the cost of capital for homeowners and businesses,” they said.
The pair continued to commit to “constructive dialogue” and added that they “continue to contribute our facts and arguments so that reasonable solutions can be found.”
