Latest news with #Ermotti
Reuters
03-04-2025
- Business
- Reuters
Regulatory uncertainty weighing on UBS, CEO Ermotti says
ZURICH, April 3 (Reuters) - Regulatory uncertainty is weighing on the valuation of UBS (UBSG.S), opens new tab and other European lenders and the Swiss bank's integration of its former rival Credit Suisse has placed an added burden on it, UBS CEO Sergio Ermotti said on Thursday. "European banks have a 20% discount for regulatory uncertainty," Ermotti said at an event in Zurich. "Not necessarily because it's strict or not strict, but because it's unpredictable," he added. UBS faces an additional discount over uncertainty about the bank's ongoing integration of its fallen rival, as well as the new banking regulation Switzerland is drawing up in response to the 2023 demise of Credit Suisse, he said. The Swiss government in early June is expected to present an initial proposal on the future capital requirements Switzerland's remaining big bank faces under the new rules. "If we have 50% more minimum requirements than our competitors it will be impossible to be competitive with these big players," Ermotti said making reference to U.S. banks like Bank of America, Morgan Stanley and Goldman Sachs.
Yahoo
02-04-2025
- Business
- Yahoo
UBS's Ermotti Leads European Bank CEOs' Pay
UBS boss Sergio Ermotti was the highest-earning CEO across continental Europe's biggest banks last year. Ermotti was awarded 14.9 million Swiss francs ($16.9 million) in total compensation for 2024, putting him well above the average income for the CEOs at the region's 10 largest lenders, according to calculations by Bloomberg News. Steven Arons reports on Bloomberg Television. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
UBS CEO says better early warning will help make banking safer
ZURICH (Reuters) - UBS CEO Sergio Ermotti on Wednesday urged authorities to improve their ability to detect problems at banks as he sought to find common ground over efforts to overhaul the Swiss banking sector following the 2023 demise of Credit Suisse. UBS is at the heart of the debate on new regulations because of the significance it assumed when it acquired the stricken Credit Suisse, and the question of how much extra capital it should hold to be sufficiently robust is highly contentious. The bank says saddling UBS with excessive capital demands would put it and the Swiss financial centre at a disadvantage, and in a memo to staff he posted online, Ermotti urged authorities to act prudently when drawing up new rules. He backed key planks of reform proposals set out by the government and said it was important that authorities are able to detect potential weaknesses earlier. "Public stress tests like those used in the U.S. and other jurisdictions can better pinpoint the strengths and weaknesses of financial institutions," Ermotti said. He also backed steps that would address canceling and clawing back compensation from people who had been negligent. Speaking earlier on at the European Financials Conference organized by Morgan Stanley, Ermotti said he expected more clarity in May on the capital requirements question, but noted that UBS does not control the political process.
Reuters
19-03-2025
- Business
- Reuters
UBS CEO says better early warning will help make banking safer
ZURICH, March 19 (Reuters) - UBS (UBSG.S), opens new tab CEO Sergio Ermotti on Wednesday urged authorities to improve their ability to detect problems at banks as he sought to find common ground over efforts to overhaul the Swiss banking sector following the 2023 demise of Credit Suisse. UBS is at the heart of the debate on new regulations because of the significance it assumed when it acquired the stricken Credit Suisse, and the question of how much extra capital it should hold to be sufficiently robust is highly contentious. here. The bank says saddling UBS with excessive capital demands would put it and the Swiss financial centre at a disadvantage, and in a memo to staff he posted online, Ermotti urged authorities to act prudently when drawing up new rules. He backed key planks of reform proposals set out by the government and said it was important that authorities are able to detect potential weaknesses earlier. "Public stress tests like those used in the U.S. and other jurisdictions can better pinpoint the strengths and weaknesses of financial institutions," Ermotti said. He also backed steps that would address canceling and clawing back compensation from people who had been negligent. Speaking earlier on at the European Financials Conference organized by Morgan Stanley, Ermotti said he expected more clarity in May on the capital requirements question, but noted that UBS does not control the political process.
Yahoo
17-03-2025
- Business
- Yahoo
UBS kept lid on CEO Ermotti's pay in 2024 amid regulation tussle
By Ariane Luthi ZURICH (Reuters) -UBS CEO Sergio Ermotti's total pay was 14.9 million Swiss francs ($16.9 million) last year, with the bank keeping his remuneration in check as it navigates a tense political debate about how it is regulated. That compares with the 14.4 million francs for nine months' work in 2023 when Ermotti returned to UBS to oversee the integration of Credit Suisse. Even with the shortened work year, that made him then the best-paid boss among leading European banks. Finance Minister Karin Keller-Sutter publicly questioned whether that sum was appropriate, fueling friction between the bank and the government as the regulatory debate intensified. Last year, Ermotti's base salary remained stable, while his variable compensation fell to 12.1 million francs from 12.25 million francs in 2023, the bank said in its annual report. His total compensation was lower than that of David Layton, the CEO of Swiss private equity firm Partners Group, who received almost 17 million francs last year. UBS bought its former rival Credit Suisse for just 3 billion francs in a state-engineered deal after the once-powerful institution fell apart in a welter of scandals. The UBS that emerged from the takeover has a balance sheet bigger than the Swiss economy, stirring concern about what would happen if the enlarged bank failed, and leading to calls to draw up tougher regulations to prevent another meltdown. Central to that is how much additional capital UBS should hold, and in the annual report the bank criticized what it called an "often ill-informed public debate" in Switzerland about potential risks stemming from its business activities. The Swiss upper house of parliament backed a motion this month to cap bankers' pay at between 3 and 5 million francs ($3.4 million-$5.7 million). UBS said that total fixed and variable compensation for its executive board in 2024 was 143.6 million francs, up from 140.3 million francs a year earlier. The group-wide bonus pool stood at $4.7 billion last year compared with $4.5 billion in 2023. ($1 = 0.8837 Swiss francs) Sign in to access your portfolio
