3. VERY Shareholder-Friendly
UBS is proud to have stood out from rivals with a promise to pay out a large share of profits back in 2011. This year, it augmented the investor-friendly measure with a $2 billion share buyback plan. The most recent measure hasn’t had the desired perk-up effect on UBS’ stock. An even more aggressive dividend yield would make investors sit up and listen. The topic is certain to surface at UBS’ investor day.
4. Getting Rid of Regulatory Pressures – and Relocate
Ermotti said so himself a year ago: keeping the headquarters in Switzerland isn't a given a such. Leaving UBS Switzerland with the private and retail banking Switzerland makes sense. But the more risk-prone investment bank and the group itself, hampered by political moves to curtail the freedom of corporates and leverage ratios, may well feel better at home somewhere else. Being closer to growth markets in the U.S. or Asia could help boost its business.
Relocating would be seen as a measure born out of desperation. And therefore it seems rather unlikely that the bank will actually do more than threaten occasionally and purposefully.
5. Old-School: Cutting, Slashing, Saving
The short-lived spark in Credit Suisse’s stock was prompted in large part by three years of CEO Tidjane Thiam’s rigorous and deep cost-cutting. By contrast, Ermotti consistently refuses to roil staff with new spending cuts after reaching a $2.1 billion target early. How much longer? Investors will eventually clamor for cuts – and Ermotti can be expected to acquiesce.
