UBS chief executive Sergio Ermotti is preparing to leave his role in April 2027, reported the Financial Times citing sources.
Ermotti, who rejoined UBS in 2023 following the government-brokered acquisition of Credit Suisse, is anticipated to exit after completing the integration work between the two banking institutions.
The move comes at a significant moment for UBS, which is currently engaged in discussions with Swiss authorities over plans to impose stricter capital requirements.
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This ongoing dispute has prompted questions about whether UBS might consider relocating its headquarters abroad.
Chair Colm Kelleher brought Ermotti back into the chief executive position at UBS, an office he had occupied for nine years until 2020, shortly after the bank agreed to acquire Credit Suisse in a rescue deal.
The process of finding a replacement is expected to accelerate ahead of the bank’s annual general meeting next year, the news publication added.
Among those seen as potential successors is Aleksandar Ivanovic, asset management chief who joined the group executive board in March 2024, as per the report.
Other internal candidates include Iqbal Khan and Robert Karofsky, co-heads of wealth management, as well as Bea Martin, who became chief operating officer last year after managing the division responsible for winding down unwanted Credit Suisse assets.
The exact timing of Ermotti’s departure has not been confirmed by the board and could still be adjusted, sources added.
On his return to UBS, Ermotti committed to remain at the helm for three to five years when he returned in 2023.
His remit included overseeing the absorption of Credit Suisse and outlining plans for future growth while developing internal talent for succession.
The integration process has included tackling regulatory and legal issues inherited from Credit Suisse. During this period, UBS’s share value has doubled.
However, Ermotti’s tenure has also seen a public disagreement with Swiss authorities regarding proposals that would require UBS to increase its capital buffer by approximately $24bn.
The bank has argued that such changes would “jeopardise” its operations. Decisions on these reforms are expected before Ermotti steps down.
Chairman Kelleher is leading succession planning and is said to be seeking a transition similar to that recently carried out at Morgan Stanley, which offered a choice among several internal candidates.
Iqbal Khan has frequently been mentioned as a possible successor.
Previously at Credit Suisse, Khan moved to UBS after a contentious episode with his former employer and later relocated to Hong Kong in 2024 as head of Asia-Pacific. At that time, Robert Karofsky became head of the Americas division.
Bea Martin was promoted to chief operating officer after her role managing non-core assets.
Ermotti had signalled in 2024 that he intended to step down either at the end of that year or early in 2027.
According to people familiar with discussions, he might consider returning as chairman at a future date if the opportunity arises.
In terms of compensation, Ermotti received SFr14.9m ($18.7m ) for 2024, ranking him as Europe’s highest-paid banking CEO in that year.
UBS declined to comment on both succession and Ermotti’s timeline for departure.
In comments previously made to Reuters, Ermotti said his intention was to “dramatically” improve the chances of an internal successor but left open the option for an external appointment if needed.
Appearing on Bloomberg TV from Shanghai, Ermotti indicated that UBS would soon implement further job reductions following plans to retire some legacy computer systems inherited from Credit Suisse, along with the closure of certain IT and data centres.
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