The CEO of UBS, Sergio Ermotti, is preparing his exit from the bank, triggering a high-stakes succession race for one of the most prominent roles in global banking. According to Financial Times reports, Ermotti, who returned to lead UBS in 2023 following the state-orchestrated takeover of Credit Suisse, intends to step down once the integration of the two banking giants is complete.
The clash with the Swiss government
Ermotti’s planned departure comes at a pivotal moment for UBS, as the bank actively opposes Swiss government plans to tighten capital requirements. This dispute has fueled intense speculation that Switzerland's largest lender could potentially relocate its headquarters abroad. The Swiss government aims to increase UBS's capital buffers by approximately $24 billion, a move that analysts and investors claim has weighed heavily on the bank’s stock price. On Monday, UBS stated that these proposals would "jeopardize" its success. Implementing these reforms, which could be finalized before Ermotti is replaced, will be at the very top of the new leader's agenda.
The top contenders
Ermotti was unexpectedly reinstated at the helm of UBS—a role he previously held for nine years until 2020—by Chairman Colm Kelleher, just weeks after the bank agreed to rescue its former rival from collapse. Ermotti’s exit timeline, expected around the bank’s annual general meeting next year, will mark the formal start of the succession process for one of the industry's most sought-after positions. Aleksandar Ivanovic, head of asset management at UBS, has emerged as one of the frontrunners to succeed Ermotti, according to sources familiar with the matter. Ivanovic, a Swiss national who joined the group’s executive board in March 2024, is the latest executive to be identified as a candidate, having impressed the board with his performance in the asset management sector.
Other primary candidates include the co-heads of wealth management, Iqbal Khan and Robert Karofsky, sources added. Bea Martin, who was appointed as the bank’s chief operating officer in October, is also considered a potential successor in this competitive race.
The Morgan Stanley model
Kelleher, who is overseeing the transition, seeks to follow the example of his former employer, Morgan Stanley, which had several strong internal candidates when CEO James Gorman stepped down in 2023. Kelleher has previously described the ideal succession as a "bloodless coup," a model he hopes to emulate to ensure market stability and continuity for the firm.
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