UBS CEO’s $16M pay attracts finance minister’s concern

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Swiss Finance Minister Karin Keller-Sutter stated she is anxious concerning the compensation being paid out to executives corresponding to Sergio Ermotti, who was introduced again to run UBS Group a 12 months in the past and oversee the rescue of Credit score Suisse.

Ermotti, who has been main one of the crucial complicated financial institution integrations lately, acquired a complete compensation of round $16 million for his first 9 months on the job, making him the highest-paid European bank chief. Though it is as much as shareholders to log out on such quantities, they exceed “the creativeness of any regular citizen,” Keller-Sutter stated throughout a press convention. 

“It does concern me,” she stated, including that she was expressing her personal views and referring to a broader development at firms, not simply UBS and its CEO. “Within the final couple of years this has led to an alienation between firms and the folks.”

The Swiss authorities on Wednesday launched a sweeping set of measures to reform financial institution oversight in response to the nation’s most extreme monetary downturn in additional than a decade, responding to a weak spot that helped speed up Credit score Suisse’s demise final 12 months. The proposals successfully single out UBS as Switzerland’s sole globally systemic lender, whereas stopping wanting giving the regulator the ability to positive lenders.

UBS final month introduced that it lower its general bonus pool for 2023 by 14% regardless of having a document annual revenue pushed by the acquisition of Credit score Suisse. The bonus allocation was a mirrored image of the presence of inauspicious working situations and market volatility, the financial institution stated. 

As a part of the proposals put ahead on Wednesday, the federal government stated it is going to think about potential claw-backs for bonuses. Shareholders in UBS are planning to vote on executives’ compensation later this month.

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