Sergio Ermotti, the CEO of the world’s largest wealth manager, is beginning the countdown to his planned departure. The Swiss banker’s goal? A decade-long running of UBS.
This Monday, Sergio Ermotti begins his ninth year at the helm of the $2.4 trillion wealth manager. The milestone marks a countdown for the 59-year-old Swiss banker’s closely-guarded plan of how and when he plans to depart.
Ermotti has told several close associates that he would like to stay in the CEO seat until the Swiss bank’s shareholder meeting in 2021 – meaning he plans to depart in roughly 18 months’ time.
The news marks the first firm sign of Ermotti’s planning on his own succession, even as a three-way race to succeed him kicks off inside UBS. Ermotti, who began his career as an apprentice at a regional Swiss lender in his native Ticino, has described one decade at the helm of UBS as his dream and ambition to people close to him.
A UBS spokeswoman declined to comment. Ermotti wrested the question of his own exit from UBS’ board through his successful overhaul of the Swiss bank from 2012 to 2015. His authority to make the decision himself came into question in 2018 and this year, according to a person familiar with the board’s thinking.
Some directors voiced displeasure with Ermotti’s lack of substantial new strategic plans for UBS, as well as an abysmal share price. The pressure points prompted some of them – including Ann Godbehere, Michel Demare, and Isabelle Romy – to push for Ermotti’s succession to be accelerated, one person said.
The directors wanted to avoid a year or 24 months of drift, opening UBS up to the risk of losing talent, clients, and market share, according to a person familiar with the board’s discussions.
