Home / Business and Economy / UBS CEO Ermotti May Stay Amidst Regulatory Storm
UBS CEO Ermotti May Stay Amidst Regulatory Storm
28 Feb
Summary
- UBS board aims to extend CEO Ermotti's tenure.
- New Swiss regulations could force UBS to hold more capital.
- Stricter rules might compel UBS to relocate headquarters abroad.
The board of UBS is considering extending CEO Sergio Ermotti's term beyond the anticipated mid-2027 departure. This potential extension is driven by the need for experienced leadership to counter stringent regulatory proposals from the Swiss government. These new measures, introduced following the 2023 collapse of Credit Suisse, could require UBS to hold approximately $24 billion in additional capital. Furthermore, the proposals include changes to how UBS calculates its capital, potentially impacting its foreign units.
UBS has strongly opposed these measures, arguing they would undermine Switzerland's global financial competitiveness. The bank is reportedly exploring various scenarios, including the possibility of relocating its headquarters outside of Switzerland if the regulatory environment becomes too demanding. While committed to operating from Switzerland, the board is obligated to prepare for all potential outcomes to ensure the bank's continued success.
