Swiss Finance Minister Karin Keller-Sutter said she is concerned about the compensation being paid out to executives such as Sergio Ermotti, who was brought back to run UBS Group a year ago and oversee the rescue of Credit Suisse.
Ermotti, who has been leading one of the most complex bank integrations in recent years, received a total compensation of around $16 million for his first nine months on the job, making him
"It does concern me," she said, adding that she was expressing her own views and referring to a broader trend at companies, not just UBS and its CEO. "In the last couple of years this has led to an alienation between companies and the people."
The Swiss government on Wednesday introduced a sweeping set of measures to reform bank oversight in response to the country's most severe financial downturn in more than a decade, responding to a weakness that helped accelerate Credit Suisse's demise last year. The proposals effectively single out UBS as Switzerland's sole globally systemic lender, while stopping short of giving the regulator the power to fine lenders.
UBS last month announced that it cut its overall bonus pool for 2023 by 14% despite having a record annual profit driven by the acquisition of Credit Suisse. The bonus allocation was a reflection of the presence of difficult operating conditions and market volatility, the bank said.
As part of the proposals put forward on Wednesday, the government said it will consider possible claw-backs for bonuses. Shareholders in UBS are planning to vote on executives' compensation later this month.
