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UBS scandal: million-dollar salary for CEO Sergio Ermotti causes an outcry
The controversy surrounding UBS CEO Ermotti's 14.4 million franc salary is causing outrage in Switzerland. Critics demand responsibility and transparency.
UBS scandal: million-dollar salary for CEO Sergio Ermotti causes an outcry
The publication of UBS's annual report in March 2023 sparked a wave of outrage, particularly regarding the salary of CEO Sergio Ermotti. He received 14.4 million francs for nine months of work, which was criticized as excessive by politicians and shareholders. The takeover of Credit Suisse by UBS and the associated implicit government guarantee increased the rejection of Ermotti's high remuneration.
The shareholders' meeting in Basel increased dissatisfaction with Ermotti's salary package. Critics, including Fritz Peter of Actares, called the decision serious and compared it to Credit Suisse's mistakes. The Ethos Foundation warned of the dangerous incentives created by the current compensation system. Ermotti's high compensation represents an affront to shareholders, the government and the financial system.
Despite praise for rescuing Credit Suisse from bankruptcy, voices warned about the high levels of compensation compared to job losses as a result of the merger. The consultative vote on the remuneration report was only narrowly approved. UBS argued that Ermotti should be adequately compensated for his performance. A debate about additional capital requirements for banks also caused discussion at the meeting.
The discussion about banking regulation and compensation systems will continue as the Swiss government presents recommendations on the stability of the financial sector. UBS emphasized that it supports the Swiss standards, but considers additional capital requirements to be the wrong approach. The Credit Suisse acquisition highlighted UBS's ability to operate without government assistance and underscores the need for global regulatory standards.