UBS boss Ermotti becomes top-earning European bank CEO in 2023

UBS Group AG CEO Sergio Ermotti was the most highly compensated European bank head in 2023 as he returned to the Swiss banking group to oversee its acquisition of rival Credit Suisse.

UBS paid Ermotti the equivalent of roughly €15.5 million in 2023, according to data compiled by S&P Global Market Intelligence. Ralph Hamers, who took over after Ermotti's first run as UBS' top executive, was the highest-earning CEO of any European bank in 2022. Ermotti led UBS from 2011 until early 2020.

Once again at the helm of UBS, Ermotti is tasked with integrating Credit Suisse into the fold and creating a banking behemoth with assets more than twice the Swiss economy. Analysts have said the merger comes with significant execution risks given the size and complexity of the businesses.

About 14 months after the government-brokered deal was announced, UBS in May completed the merger of UBS AG and Credit Suisse AG, with the latter ceasing to exist as a separate entity. UBS also returned to profit in the first quarter after two consecutive quarterly losses, mainly due to acquisition-related costs.

This analysis includes data on the base salary, annual bonuses, stock awards, long-term incentive plans, and other perks and compensation banks give to their executives.

– Compare banks using the Peer Analysis template on S&P Capital IQ Pro. – Access more information on UBS Group's financial performance on S&P Capital IQ

Outgoing HSBC Holdings PLC CEO Noel Quinn was the next highest-paid European bank executive for 2023, pulling in €12.3 million. Standard Chartered PLC CEO Bill Winters and Deutsche Bank AG CEO Christian Sewing followed with €9 million and €8.7 million, respectively. Hector Grisi, Banco Santander SA CEO, rounded out the top five, earning €7.9 million in 2023.

Sewing and UniCredit SpA's Andrea Orcel experienced the largest rises in compensation at 99% and 91.3%, respectively. Both Deustche Bank and UniCredit delivered strong results in 2023, with the latter's total returns coming in at 94.8%, according to Market Intelligence data.

Of the top 20 European banks, French bank Société Générale SA paid its CEO the least in the group, with Slawomir Krupa earning €2.81 million in 2023.

Krupa unveiled a new strategy for the bank in September 2023, which included a target of €1.7 billion in annual savings by 2026. However, SocGen's shares slumped after the strategy's unveiling, with markets deeming the targets disappointing.

Krupa defended the plan, saying it laid out a "realistic path" for the bank. The bank has been offloading assets, particularly in Africa, as part of the strategy.