UBS boss Sergio Ermotti was questionable about the resignation of Andrea Orcel, his potential successor. As a result, Ermotti was about to be kicked out two years ago, like research by finews.ch demonstrate.
Ralph Hamers, the successor to Sergio Ermotti as UBS boss, has been fixed for about two weeks. It has also been known since yesterday (Tuesday) that Ermotti is continuing his managerial career as designated President of the Board of Directors of the reinsurer Swiss Re.
At the same time, details are coming to light, such as Ermotti leaving the head of the investment bank Andrea Orcel handled a year and a half ago. Three people familiar with the events said opposite finews.chThat Ermotti had upset the board of directors of UBS with his actions at the time.
There was a notice of termination
As previously reported, Ermotti allowed more than ten days to pass until he informed the board of directors about Orcel’s planned departure. The Italian was one of the top candidates for Ermotti’s successor.
The twelve-member supervisory body around the President Axel Weber was so angry that a termination of Ermotti was being considered. However, this was then rejected as an overly tough measure, according to a person who is aware of the relevant discussions in the Board of Directors.
Only two more years
So Ermotti avoided being kicked out. However, the board of directors made it clear to the UBS boss that his term of office would last a maximum of two years, the person continued, “the discussion on the board of directors was intense.”
Another person said: “The board of directors told Ermotti that he shouldn’t expect to remain CEO for more than two years.”
The last piece of the puzzle
This verbal deadline for the UBS administration rate is the last piece in the puzzle in the more than two-year discussions and speculations about Ermotti’s successor.
Surprisingly, the largest Swiss bank announced two weeks ago that Hamers would replace the 60-year-old Ermotti in November – exactly two years after the board of directors set the deadline.
Orcel’s departure from UBS in autumn 2018 left Weber, the board member responsible for succession planning, David Sidwell. Isabelle Romy and Michel Demare back with very limited options.
Despite everything, very well deserved
Because only had nine months before Jürg Zeltner Another member of the Group Executive Board has already left UBS with the potential to become a CEO. Demaré has since left UBS and Romy is no longer standing for re-election at this year’s general assembly.
Ermotti’s environment vigorously denies the above version. The reason for this is his compensation package of CHF 14.1 million, which has remained practically unchanged for 2018. That year, the Board of Directors praised him for his personnel policy and succession planning in accordance with the compensation report. UBS stated that the allegation of possible dismissal was wrong and lacks any basis.
Weber did not want Ermotti on the board
However, it is known that the relationship between Weber and Ermotti broke at the turn of the year 2018/19. The UBS President had not only raised the issue of succession in an interview. Rather, he was critical of the possibility that Ermotti could change to the UBS Board of Directors and later take over as Chairman.
Weber then apologized for his public comments. The ex-Bundesbanker and the sometimes hot-headed Ticino pulled themselves together again.
With Iqbal Khan the pressure decreased
In summer 2019, Ermotti seemed to be able to pull his head out of the noose: with the only 43 year old Iqbal Khan He brought the supposedly most promising private banker in Switzerland on board and thus initiated the urgently needed rejuvenation in the executive committee.
However, the past year was also largely characterized by the catastrophic outcome of the tax process in France, so that the UBS share price temporarily fell below the CHF 10 mark – factors that reduced Ermotti’s salary for 2019.
The whole story ends well for the UBS boss: he will be able to continue his career seamlessly on the Board of Directors of Swiss Re, where he has been granted the footsteps of the long-standing president Walter Kielholz to kick.
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