UBS boss Sergio Ermotti's pay fell more than 10 percent in 2019, amid a setback for the Swiss wealth manager in a landmark French criminal trial. Private bank co-boss Iqbal Khan was paid $8.4 million to defect from Credit Suisse.
The Zurich-based bank cut pay for outgoing CEO Sergio Ermotti to 12.5 million ($12.9 million) last year from 14.1 million francs in 2018, according to UBS' annual report published on Friday. The bank said it weighed the impact of a French criminal ruling against UBS last year for top executives, as well as the «resulting share price development».
The long-standing UBS boss, who is a notable shareholder as well, remains the highest-paid banker at the Swiss wealth giant – and likely among the top earners of European bank CEOs as well. UBS paid its new-co-head of private banking, Iqbal Khan, 8.2 million francs to defect from Credit Suisse last summer, the report reveals. His annual pay isn't disclosed.
Chairman's Burden
UBS Chairman Axel Weber shouldered the bulk of the «French burden»: his pay dropped to 5.2 million francs, from 6 million in 2018. A total of 14 people including outgoing directors Anne Godbehere and Michel Demare, who opted not to stand for reelection last spring, 14 directors took home 12.5 francs, which is 1 million francs less than in 2018.
Ermotti hands over to UBS' next CEO, Ralph Hamers, in November. Hamers' 1.75 million euro ($1.9 million) pay-day in 2018 illustrates the stark differences between corporate Switzerland and the eurozone: the Dutch banking veteran was due for a 50 percent pay rise two years ago for running ING – until Dutch politicians put the kibosh on it.
