By Ariane Luthi ZURICH, March 9 (Reuters) - The pay package of UBS CEO Sergio Ermotti was 14.9 million Swiss francs ($19.1 million) in 2025, the bank said on Monday, flat from 14.9 million Swiss
UBS keeps CEO's pay steady at $19 million as regulatory changes loom
UBS Compensation Decisions and Regulatory Environment
By Ariane Luthi
CEO Compensation Remains Unchanged
ZURICH, March 9 (Reuters) - UBS kept CEO Sergio Ermotti's total compensation steady at 14.9 million Swiss francs ($19 million) last year amid scrutiny of the bank as it pushes back against government proposals on capital levels, and criticism of CEO pay packets more broadly.
Bonus Pool Increase and Bank Performance
But UBS, which became Switzerland's largest bank after a government-engineered emergency takeover of Credit Suisse in 2023, lifted its group-wide bonus pool by 10% to $5.1 billion on improved earnings.
Strong Earnings and Integration Progress
The bank's net profit jumped 53% to $7.8 billion last year and the integration of Credit Suisse has proceeded smoothly.
Regulatory Changes on the Horizon
Proposed Capital Requirements
Proposed changes to the Swiss capital framework would require UBS to hold additional Common Equity Tier 1 (CET1) of around $22 billion, the bank said in its annual report, updating its previous guidance of an extra $24 billion.
Government Rationale and UBS Response
The government's final proposal is set to be announced in the coming weeks. Swiss authorities argue the extra capital requirements are necessary to protect the country's economy in times of stress on the banking system, while UBS contends the measure would render it uncompetitive.
Debate Over Executive Compensation
High bonuses for CEOs have also come under fire.
Public and Political Criticism
Finance Minister Karin Keller-Sutter, who is in charge of the current banking regulation overhaul, said in 2024 that she would have to work for 30 years to earn the equivalent of Ermotti's pay.
Comparison with Other Swiss Executives
Swiss pharma giant Novartis' CEO Vasant Narasimhan received a 24.9 million Swiss franc compensation package for 2025, which proxy advisory firm Ethos has called "particularly excessive".
($1 = 0.7793 Swiss francs)
(Reporting by Ariane Luthi, Editing by Miranda Murray and Edwina Gibbs)
