UBS Announces Major Executive Changes and Splits Wealth Management Leadership : Company : Business Times

UBS Group AG announced a significant restructuring of its board on Thursday, marking a key moment in the Swiss banking giant’s ongoing integration with Credit Suisse, its bankrupt rival acquired in a dramatic rescue operation last year. This change is part of UBS’ broader strategy for sustainable and strategic growth, with a focus on the Americas and Asia-Pacific regions.

The executive shake-up includes the split of the global wealth management role between Iqbal Khan and Rob Karofsky. Khan, who will now oversee the Asia-Pacific region, and Karofsky, who will lead operations in the Americas, are strong candidates to succeed CEO Sergio Ermotti. The move marks the first time the division’s CEO will be based in the Asia-Pacific region, reflecting UBS’s commitment to expanding its influence in this key market.

Sergio Ermotti, who returned to UBS last year to navigate the complexities surrounding the Credit Suisse acquisition, is expected to step down in early 2027. “The appointments announced today to the Group Board will enable us to make further progress in integrating the journey and achieving the expected synergies and efficiencies, placing even greater emphasis on our long-term priorities and growth prospects, particularly in the Americas and the Asia-Pacific region,” Ermotti said.

The reconstruction also introduces new faces to the management board. George Athanasopoulos and Marco Valla will be co-CEOs of the investment bank, and Damian Vogel will become global chief risk officer. They replace outgoing board members, including Credit Suisse CEO Ulrich Körner, UBS Asia Pacific president Edmund Koh and UBS Americas regional president Naureen Hassan.

The leadership changes come at a key time as UBS prepares to legally complete its parent company’s merger with Credit Suisse’s parent companies. This merger, scheduled for Friday, will enable UBS to deal with more complex integration tasks, such as combining IT systems, migrating clients from Credit Suisse and reducing its total workforce of more than 110,000 employees.

Vontobel analyst Andreas Venditti described the staffing changes as broader than expected, emphasizing the strategic importance of the appointments. “These changes make Iqbal and Rob the top candidates to become CEO of UBS,” Venditti noted.

The transition also involves the retirement of several key figures. Ulrich Körner, former CEO of Credit Suisse, will retire later this year, and Christian Bluhm, current chief risk officer, will be replaced by Damian Vogel, although Bluhm will remain in an advisory role. This strategic exit is in line with UBS’s vision for a streamlined and more efficient board.

Naureen Hassan’s departure is notable because she is one of several women executives to leave the bank in the last year. Beatriz Martin, UBS’s president for Europe, the Middle East and Africa, remains a potential candidate to succeed Ermotti, underscoring the bank’s continued focus on internal leadership talent.

Ermotti has made it clear that he prefers to be succeeded by an internal candidate, which he confirmed in a recent interview with Reuters. “Our goal is to really radically increase the chances of having an internal candidate,” he emphasized, ruling out the possibility of appointing an outside person as his successor.

UBS’s strategic reorganization also comes in response to the Swiss-brokered takeover of Credit Suisse to prevent the collapse of the 167-year-old institution and safeguard the Swiss economy. This integration process is crucial for UBS as it seeks to leverage synergies from the merger and strengthen its market position globally.

The bank’s broader vision includes significant investments in the Americas and Asia-Pacific. This is reflected in Iqbal Khan’s move to Asia and Rob Karofsky’s leadership in the US, signaling UBS’s commitment to capitalize on growth opportunities in these markets. As part of its sustainable strategic growth strategy, UBS intends to enhance its wealth management services and expand its client base in these regions.