The board of directors at UBS, the Swiss banking giant, is considering extending the tenure of Chief Executive Officer Sergio Ermotti beyond the previously indicated timeframe. UBS oversaw the 2023 emergency takeover of Credit Suisse. UBS is a global financial services firm providing wealth management, investment banking, and asset management services. According to a report in Neue Zuercher Zeitung (NZZ), the board, led by Chairman Colm Kelleher, wants Ermotti to remain in his role to guide UBS’s response to the Swiss government’s proposed tighter regulations for banks. Ermotti was initially expected to step down by mid-2027, though sources had indicated this timeline was not finalised.
A UBS spokesperson, when queried about the NZZ report, reiterated that Ermotti would remain Group CEO until at least early 2027. The spokesperson also stated that it was premature to speculate on his departure timing. They added that the board would consider both internal and external candidates when the time comes to decide on a successor, fulfilling its fiduciary duty.
The Swiss government’s proposed measures, introduced in June, aim to prevent future banking crises similar to the Credit Suisse collapse. These plans could require UBS to hold up to $24 billion in additional capital. Other proposals include restrictions on counting software and deferred tax assets towards Common Equity Tier 1 capital, and the full backing of foreign units with CET1 capital. UBS has voiced its opposition to these proposals, arguing they would diminish Switzerland’s competitiveness.
NZZ also reported that UBS is evaluating various potential outcomes of the regulatory discussions, including the possibility of relocating its headquarters abroad. The UBS spokesperson emphasised the bank’s commitment to operating successfully as a global bank from Switzerland but acknowledged the board’s obligation to prepare for all scenarios.
