UBS Group cut last year's prize pool by 14%. Deal makers and traders have had a difficult year, yet CEO Sergio Ermotti is one of the highest-grossing European bank bosses.
CEO Ermotti's salary for the first nine months of his tenure was 14.4 million Swiss francs (15.9 million US dollars), including 12.3 million Swiss francs in variable compensation, UBS said in its annual report on Thursday.
“The Board recognises Mr. Ermotti's outstanding performance during a defining year in UBS history and the tremendous progress he has made in meeting consolidation priorities.” UBS said in the report.
The company's annual profit reached a record $27.8 billion, which was almost entirely driven by the extraordinary impact of the acquisition of Credit Suisse. The so-called negative goodwill effect has been reduced by $1.2 billion from earlier estimates.
Chairman Colm Kelleher received a fixed salary of 4.7 million Swiss francs from 2023-2024.
UBS said in the report that the overall reduction in bonus amounts reflects the impact of “the challenging business environment in the financial industry, as well as uncertainty and market fluctuations brought about by continuing geopolitical tension.”
Banks across Europe are slashing the investment banking sector's prize pool. BNP Paribas reduced investment banks' total variable remuneration by about 5%, and Deutsche Bank reduced the investment bank prize pool by more than 10%.