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UBS and Roche have abandoned their diversity commitments, including UBS's goal of having 30% of management positions filled by women by 2025. This shift reflects a broader trend among Swiss companies, which face conflicting pressures from U.S. regulations and local inclusion policies, leading to a complex landscape of diversity initiatives.
UBS CEO Sergio Ermotti earned 14.9 million Swiss francs in 2024, including a fixed salary of 2.8 million and bonuses of 12.1 million. His remuneration, a 4% increase from the previous year, has sparked criticism and debate over high bonuses in Switzerland, especially as it remains lower than some German CEOs. A parliamentary proposal to cap bankers' salaries at 3 to 5 million Swiss francs could significantly impact UBS if approved.
The Swiss National Council is set to decide on a proposed salary cap for bank executives, primarily targeting UBS's CEO Sergio Ermotti, whose salary for 2024 is CHF 14.9 million. While public frustration over high salaries grows, the focus should shift to enhancing capital requirements for banks, especially following the Credit Suisse collapse, which highlighted the need for stronger equity buffers. UBS faces potential additional capital requirements of up to $25 billion, yet the Federal Council's reluctance to enforce stricter regulations risks undermining the stability of Switzerland's banking sector.
Banque Cantonale du Valais will appoint two new directors, including Laure Deppierraz as vice-president, to its Board of Directors, while Pierre-Alain Grichting remains chairman. The Conseil d'Etat's proposal, set for approval at the Annual General Meeting on April 17, follows the departure of current Vice-Chairman Gabriel Décaillet and Pascal Indermitte.
UBS CEO Sergio Ermotti earned CHF 14.9 million in 2024, a figure deemed high in absolute terms but moderate compared to U.S. counterparts. The shrinking job market for bankers, exacerbated by the Credit Suisse merger and AI advancements, raises concerns about the future of banking careers. Experts suggest Ermotti's lower salary this year may reflect political considerations amid calls for capping bank executive pay.
Investors in Switzerland are increasingly drawn to high-dividend stocks amid a low interest rate environment and geopolitical uncertainty. A focus on companies with strong balance sheets and stable cash flows is essential, as dividends have historically contributed significantly to total returns. Additionally, writing covered call options can provide extra income, with potential tax benefits for Swiss investors.
The departure of Credit Suisse has reshuffled the corporate lending landscape in Switzerland, with Raiffeisen emerging as the second-largest player in this sector. Despite increased inquiries and a gain of 5,000 new corporate clients, the bank maintains that it has not lowered its lending standards. Rising refinancing costs and stricter regulations are driving up loan prices, while alternatives to traditional lending remain limited.
UBS has faced criticism over CEO Sergio Ermotti's 2024 salary of CHF 14.9 million, despite a slight decrease in his bonus. Political figures and the proxy advisor Ethos have expressed concerns about high executive pay, with proposals to cap banking sector salaries gaining traction. Meanwhile, UBS is also navigating increased capital requirements to mitigate risks following the Credit Suisse integration.
Salaries for CEOs of major Swiss companies are on the rise, with UBS CEO Sergio Ermotti earning 14.9 million francs and Novartis CEO Vasant Narasimhan at 19.1 million francs. This trend has sparked political debate, including a proposed salary cap for bankers, which faces opposition from the Bankers Association. Shareholders, particularly large asset managers, prioritize company performance over concerns about executive pay.
UBS CEO Sergio Ermotti earned 14.9 million sfr in 2023, making him the second-highest-paid CEO in Switzerland, behind Novartis CEO Vasant Narasimhan, who earned 19.2 million sfr. Ermotti's monthly salary decreased to just over 1.2 million sfr in 2024, down from 1.6 million sfr the previous year, with no clear explanation for the 25% pay cut.
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Swiss companies retreat from diversity commitments amid transatlantic pressures
10:26 19.03.2025
ubs ceo sergio ermotti earns 14.9 million swiss francs in 2024
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Euro
Swiss Franc
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rising executive salaries spark debate in swiss corporate governance
Swiss Franc
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SGS SA
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CHE
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ubs ceo salary drops amid political scrutiny and industry comparisons
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