UBS CEO Sergio Ermotti has bought a million shares of the biggest Swiss bank worth about a year’s pay. What are his intentions?
One million UBS shares worth about 13 million Swiss francs ($13 million) acquired by a member of the top management of the company: that was what SIX, the stock exchange operator, said in a statement on Monday evening.
The transaction was completed on Friday, the day after the investors’ update by the bank in London, where it presented details about its growth strategy through 2021.
One Year's Income
Today, we know that the buyer was UBS CEO Sergio Ermotti himself – the bank told «Reuters». UBS said it wouldn’t normally reveal the identity of the buyer but made an exception in this case.
Ermotti spent almost a year’s income on UBS shares – he earned just over 14 million francs in 2017, up from 13.7 million in 2016.
Miffed About Share Price
Buying shares of the company you manage can mean two things: either they are a sign of trust in the development of the firm or the buyer simply wants to make a statement. In Ermotti’s case chances are that the latter is true. The share price has fallen by about a quarter since the beginning of the year even though the profits were meant to make investors happy.
In an interview, Ermotti let it be known that he didn’t appreciate the direction the stock was taking. Time will tell whether his personal interest will help sway sentiment among investors.
