UBS CEO Sergio Ermotti’s total compensation package will remain at 14.9 million Swiss Francs (USD 19 million) for the 2025-26 financial year, amid the Swiss banking giant’s pushback against the European country’s government proposals on the company’s capital reforms.
Under Sergio Ermotti, UBS not only became Switzerland’s largest bank after a government-choreographed emergency takeover of Credit Suisse in 2023, but it also lifted its group-wide bonus pool by 10% to USD 5.1 billion on improved earnings.
In fact, the bank’s net profit jumped 53% to USD 7.8 billion in 2025, with the integration of Credit Suisse proceeding smoothly. However, much sheen has been taken off due to the standoff between the bank and the Swiss government. Lawmakers in the European country reportedly told the financial biggie to tone down its lobbying campaign on the capital reforms issue, apart from lowering Sergio Ermotti’s profile.
The proposed changes to the Swiss capital framework would require UBS to hold additional Common Equity Tier 1 (CET1) of around USD 22 billion. While the Swiss government’s final proposal is set to be announced soon, Swiss authorities have defended the reform proposal as a mechanism for addressing extra capital requirements, that are necessary to protect the landlocked country’s economy in times of stress, while UBS contends the measure would render the venture uncompetitive.
However, according to Financial Times’ sources, UBS won’t consider the proposal of lowering Sergio Ermotti’s public profile. Talking about Ermotti, who rejoined the financial biggie in 2023, following the Credit Suisse acquisition, is reportedly mulling an exit after completing the integration work between the institutions. The process of finding a successor may accelerate ahead of the bank’s annual general meeting scheduled for 2027.
Potential successors include Aleksandar Ivanovic, asset management chief who joined the group executive board in March 2024, along with Iqbal Khan and Robert Karofsky, co-heads of wealth management, and Bea Martin.
Bea Martin became UBS’ Chief Operating Officer (COO) in 2025 after successfully leading the division responsible for winding down Credit Suisse’s unwanted assets.
Sergio Ermotti, who served as CEO till 2020, was brought back by UBS’ Chairman Colm Kelleher, immediately after the bank agreed to acquire Credit Suisse in a government-brokered rescue deal. He oversaw the once-rival’s absorption into the company’s fold, outlined a growth agenda for the combined venture, and nurtured internal talents for leadership successions. Not only did UBS tackle the regulatory and legal fallouts efficiently, but it also managed to double its share value.
While Sergio Ermotti had signalled in 2024 about his intention to step down either at the end of that year or early in 2027, as per reports, he might consider returning as chairman if the opportunity arises.