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Concerns are rising over the influence of powerful entities like banks and health insurance companies, which seem to operate with impunity, akin to states within a state. Following the upheaval at Credit Suisse, there are calls for accountability, yet rumors suggest UBS may relocate to the U.S., raising further questions about the stability of the financial sector. Meanwhile, Ermotti's substantial salary of 15 million a year remains a point of contention amidst these developments.
UBS has removed diversity targets from its 2024 annual report, shifting its focus to meritocracy. Previously, the bank aimed for 30% of management roles to be held by women and to increase ethnic minority representation among U.S. financial advisors. A spokesperson emphasized the commitment to a diverse workforce while prioritizing merit in hiring and promotions.
UBS CEO Sergio Ermotti's salary of CHF 14.9 million has sparked public outrage and calls for a salary cap for bankers, with critics arguing that such compensation is excessive. While Ermotti's pay includes a fixed salary of CHF 2.8 million and performance bonuses, some politicians advocate for limits to ensure moderation in executive compensation. The National Council is set to discuss a proposed cap on bankers' salaries, reflecting growing concerns over income inequality in the financial sector.
UBS's chairman and CEO have dismissed concerns about the bank's size following its acquisition of Credit Suisse, arguing that UBS's low-risk model and high asset quality make it safer than its predecessor. They emphasized the importance of maintaining competitive capital requirements while supporting government proposals for a more resilient financial system. UBS reported a profit of $5.1 billion for 2024 and plans to distribute a $0.90 per share dividend to shareholders.
Pierre-Yves Maillard, head of the Swiss Trade Union Confederation, criticized UBS CEO Sergio Ermotti's CHF 14.93 million salary, calling it excessive and disconnected from the realities faced by most people. While some parliamentarians support capping salaries in the banking sector, others argue against intervention in the free market, emphasizing the need for shareholder influence on compensation policies. The Council of States has proposed stricter remuneration rules for systemically important banks, with a motion to limit salaries to CHF 3-5 million awaiting consideration by the National Council.
UBS aims to reassure stakeholders about its financial stability in its annual report, addressing concerns raised by politicians regarding its balance sheet. This communication is timely, coinciding with the Swiss National Commission's review of provisions related to the parliamentary inquiry into the Credit Suisse takeover.
UBS's auditor issued an "adverse opinion" on the bank's internal controls over financial reporting for 2024, citing unresolved issues from its acquisition of Credit Suisse. The bank acknowledged material weaknesses in its financial reporting due to the complexities of integrating the two institutions and ongoing remediation efforts. UBS is under scrutiny as it navigates these legacy challenges, which have raised concerns among investors and regulators.
EY's auditors issued a "negative opinion" on UBS's internal controls, citing unresolved issues from its merger with Credit Suisse, which was saved in 2023. Despite UBS's efforts to address identified weaknesses, the bank requires more time to ensure effective risk assessment processes. The Swiss Financial Markets Authority is in close contact with UBS regarding these integration challenges.
UBS CEO Sergio Ermotti earned 14.9 million francs in 2024, maintaining a similar salary to the previous year despite only nine months in the role. His compensation, which includes a fixed salary of 2.8 million and a variable portion of 12.1 million, has sparked outrage among some Swiss parliamentarians, who question the justification for such high earnings, especially given UBS's state support. The Council of States is considering a cap on banking sector salaries, while UBS defends its pay structure as aligned with performance and risk management.
UBS's 2024 annual report reveals that auditors Ernst&Young raised concerns about the bank's internal controls over financial reporting, particularly regarding issues inherited from the Credit Suisse takeover. As of December 31, 2024, UBS was deemed to have ineffective internal controls, a rare adverse opinion that signals potential misstatements in financial statements and could misrepresent the bank's financial health. UBS continues to address these internal control challenges stemming from the merger, which complicates its assessment process.
Credit Suisse Strategic Income I
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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