UBS is undergoing significant personnel changes under the leadership of President Colm Kelleher and CEO Sergio Ermotti. While internal candidates are being given the opportunity to apply for top positions within the company, this alone is not enough for the bank’s success.
In 2020, when UBS CEO Sergio Ermotti introduced his successor alongside then-President Axel Weber, he appeared unhappy. He expressed his disappointment with the performance of the UBS share price during his tenure and the rejection of internal candidates by the board of directors in favor of Ralph Hamers. Hammers faced challenges integrating into UBS’s core business, which ultimately led to a failed attempt by Credit Suisse to acquire UBS.
Following this failed attempt, UBS made changes to its leadership team, removing Hamers and reinstating Ermotti as CEO. The focus shifted to experienced bankers who could drive the bank’s growth and integration efforts. Ermotti’s return led to a significant increase in the share price and progress in the integration of Credit Suisse.
Recent changes in the UBS Group Executive Board include the appointment of Iqbal Khan as co-head of Global Wealth Management and taking over the Asia region. This reshuffle reflects President Kelleher’s strategy, drawing from his experience at Morgan Stanley, to challenge leaders and push them out of their comfort zones for optimal performance.
With five internal candidates being evaluated for future leadership roles, UBS aims to prioritize both internal talent and external candidates who can contribute to the bank’s success. It is crucial for shareholders that UBS maintains a balance between internal processes and external opportunities to drive sustained growth and performance. Sergio Ermotti is expected to lead the bank through the next phase of its development before passing the baton to a suitable successor.
