[ad_1]
UBS Group AG lower its bonus pool for final yr by 14% after a harder yr for deal-makers and merchants, whereas elevating Chief Govt Officer Sergio Ermotti to the rank of best-paid European financial institution boss.
Ermotti acquired 14.4 million Swiss francs ($15.9 million) in compensation for his first 9 months on the job, together with 12.3 million francs in variable compensation, UBS stated in its annual report Thursday.
UBS introduced again Ermotti as CEO in April final yr to supervise the government-brokered rescue of Credit score Suisse and the multi-year integration of the financial institution’s former rival.
UBS posted a loss within the second half of final yr and has warned that 2024 shall be harder as extra complicated integration duties are carried out.
“The board acknowledges Mr. Ermotti’s glorious efficiency in a defining yr in UBS’s historical past and powerful progress in delivering on integration priorities,” UBS stated within the report.
Annual revenue got here in at a file $27.8 billion, pushed nearly completely by the extraordinary results of the acquisition of Credit score Suisse. The so-called unfavourable goodwill impact, associated to the low buy worth for the financial institution, was decreased by $1.2 billion from an earlier estimate.
UBS shares whipsawed after the annual report and have been briefly halted. The inventory was down 2.2% as of 10:05 a.m. in New York Thursday.
Chairman Colm Kelleher acquired mounted compensation of 4.7 million Swiss francs for the 2023-2024 interval.
UBS’s decrease general bonus allocation displays the impression from “difficult working situations for the monetary trade, and the uncertainty and market volatility ensuing from continued geopolitical tensions,” the financial institution stated in its report.
Banks throughout Europe are reducing the bonus pool at their funding banking divisions after a droop in offers and a slowdown in buying and selling final yr.
BNP Paribas SA lower whole variable compensation in its funding financial institution by about 5%, whereas Deutsche Financial institution AG decreased its equal pool by greater than 10%.
[ad_2]
