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Sergio Ermotti

From Alfawiki
Sergio Ermotti
Born (1960-05-11) May 11, 1960 (age 66)
Lugano, Switzerland
OccupationBanking executive
Years active1986–present
Known forCEO of UBS Group AG, Chairman of Swiss Re (2021–2023)

Sergio Pietro Ermotti (born 11 May 1960) is a prominent Swiss executive in the finance sector. Between April 2021 and April 2023, he held the position of chairman at Swiss Re, a top-tier global reinsurance firm, taking over from Walter Kielholz. Ermotti was the CEO of UBS Group AG from November 2011 until October 2020, and he reassumed this role in 2023.[1] Additionally, he holds a seat on the board of the Institute of International Finance.

Ermotti assumed the role of UBS Group CEO in the aftermath of the 2011 rogue trader incident, where he introduced rigorous corporate governance measures and redefined the bank’s strategic focus. His leadership steered UBS towards prioritizing wealth management and its Swiss market operations, complemented by asset management and a more focused, capital-efficient investment banking segment. Over nearly ten years at the helm, he became UBS’s longest-tenured CEO.[2] In February 2020, UBS declared that Ralph Hamers, then leading ING Group, would take over as CEO from November 2020. Following UBS’s takeover of Credit Suisse, Ermotti was reinstated as Group CEO on 5 April 2023.[3]

There has been ongoing speculation about Ermotti potentially entering Swiss politics after his banking tenure; nevertheless, he has consistently declined any involvement in the Bundesrat, stating that he is "not a politician."[4] Ermotti is proficient in Italian, German, French, and English.

Early life and education

Born on 11 May 1960 in Lugano, Switzerland—a city where Italian is predominantly spoken—Sergio Pietro Ermotti originally aimed for a career as a professional football player or sports instructor. Instead, he pursued an apprenticeship at Cornèr Bank in Lugano, where his father was employed, to acquire foundational knowledge in accounting and finance. Drawn to foreign exchange trading, he trained within the bank’s Securities Department and earned a Swiss federal diploma certifying him as a banking expert. Later in his career, he furthered his education by attending the Advanced Management Program at Oxford University.[5][6]

Banking career

Following the completion of his apprenticeship, Ermotti progressed into trading positions. In 1986, he joined Citibank in Zurich, where he traded equity-linked instruments and held the position of Resident Vice President.[7] The subsequent year, he transitioned to Merrill Lynch’s Swiss branch. Over a span of sixteen years, he undertook responsibilities in equity derivatives and capital markets, contributing significantly to the expansion of Merrill Lynch’s Swiss capital market operations.[7] Elevated to managing director in 1993, Ermotti led European equity derivatives from London and subsequently managed global derivatives trading based in New York. He also served as co-head of global equity markets and was a member of Merrill Lynch’s executive management committee for global markets and investment banking.[8][9]

In December 2005, Ermotti accepted a leadership role at Italian bank UniCredit in Milan as head of markets and investment banking following UniCredit’s acquisition of German bank HypoVereinsbank (HVB).[10][11] From 2007 onward, he acted as UniCredit’s deputy CEO with oversight of corporate and investment banking alongside private banking divisions. After being overlooked for the CEO position after Alessandro Profumo’s departure, Ermotti exited UniCredit in October 2010.[12]

In April 2011, Ermotti was appointed chairman and CEO of UBS’s Europe, Middle East, and Africa (EMEA) division and joined the Group Executive Board. He assumed the role of interim Group CEO in September 2011 before being confirmed as permanent CEO in November that year.[13] In the aftermath of the 2011 UBS rogue trader incident, Ermotti prioritized safeguarding the bank’s reputation over immediate profit gains.[13]

Due to his UBS commitments, Ermotti resigned as president of Darwin Airline in 2011,[14] while also serving on the board of the London Stock Exchange Group plc from 2007 through 2013.Cite error: The opening <ref> tag is malformed or has a bad name In 2012, he brought on board former Merrill Lynch colleague Andrea Orcel to head UBS’s investment banking unit. Under their guidance, UBS navigated the 2013 Libor trading scandal, underwent corporate restructuring, and saw an uptick in mergers and acquisitions activity.[15][16] When UBS AG transitioned into a holding company structure in 2014, Ermotti was appointed Group CEO of UBS Group AG. The Swiss publication Schweiz am Sonntag recognized him as the most accomplished manager among Swiss Market Index-listed firms in 2015.[17] His remuneration for 2017 was estimated at around US$14.9 million.Cite error: The opening <ref> tag is malformed or has a bad name

UBS announced in February 2020 that Ralph Hamers, then serving as CEO of ING Group, would replace Ermotti as CEO starting November 2020.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name Following UBS’s acquisition of Credit Suisse, Ermotti resumed his role as CEO on 5 April 2023.[3] In 2024, his total compensation reached 14.9 million Swiss francs (approximately $16.8 million), positioning him as Europe’s top-earning banking executive. This remuneration sparked discussions regarding proposed Swiss executive pay caps set near 5 million francs; nonetheless, 86.7% of UBS shareholders endorsed the compensation package. UBS defended the payout by citing Ermotti’s pivotal leadership during Credit Suisse’s integration post-acquisition.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name

Chairmanships and Board Roles

In March 2020, Swiss Re, a prominent global reinsurance firm, nominated Sergio P. Ermotti to join its board of directors and revealed intentions for him to assume the chairman position in 2021, taking over from Walter Kielholz. Due to his commitments at UBS, Ermotti resigned from this chairmanship at the conclusion of April 2023.

He holds the position of lead non-executive director on the board of Ermenegildo Zegna N.V. and also contributes as a board member of Innosuisse – Swiss Innovation Agency.

Personal Life

Ermotti is married and has two sons. Among his preferred movies are The Sting by George Roy Hill and One Flew Over the Cuckoo's Nest by Ken Kesey. He is a supporter of Swiss football club FC Lugano as well as Italian team A.C. Milan. Ermotti owns a residence in Montagnola along with a vacation property in Engadin.

Following nominations from Marc Walder, CEO of Swiss media group Ringier, and Gianluigi Bianchi, managing partner for Europe at Wealth-X, he took part in the ALS Ice Bucket Challenge.

See also

External links

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