UBS Succession Battle Heats Up After CEO Departure

Source Credit : Portfolio Prints

Background

Swiss banking giant UBS Group AG is at the center of a growing leadership contest after its Chief Executive Officer, Sergio Ermotti, signaled his intention to step down — setting off one of the most closely watched succession battles in global banking this year.

Ermotti’s Exit Plan and Why It Matters

Ermotti, a well-known figure in international finance, returned to UBS in 2023 to oversee the complex takeover and integration of Credit Suisse — a merger that reshaped the European banking landscape. He now plans to leave the top job in April 2027, once the integration is substantially complete, according to recent reports.

His announced departure has triggered strategic positioning among UBS’s senior ranks, with investors and analysts alike closely monitoring how the bank navigates this leadership transition.

Year/Date	Event	Description
5 April 2023	Ermotti returns as UBS CEO	Ermotti was appointed CEO again (replacing Ralph Hamers) to lead the Credit Suisse takeover and integration.
12 June 2023	Credit Suisse acquisition completed	The acquisition of Credit Suisse by UBS was formally completed.
2024–2025	Integration phase ongoing	UBS carries out legal, operational and client migration work as part of merging Credit Suisse into UBS systems and operations.
April 2027	Planned CEO transition	Ermotti plans to step down as CEO after overseeing the integration — kicking off UBS’s succession process.

A Competitive Race for Leadership

The succession battle at UBS is shaping up to be a major internal contest, with several top executives emerging as leading contenders:

• Iqbal Khan – A veteran wealth management executive often viewed by investors as the front-runner.


• Robert Karofsky – Co-President of global wealth management and head of UBS Americas, bringing a blend of regional expertise.


• Beatriz Martin – Chief Operating Officer responsible for broad operational and strategic functions.


• Aleksandar Ivanovic – Head of Asset Management, noted for strong performance in a key profit center.

Ermotti himself has publicly expressed a preference for selecting his successor from within UBS’s internal ranks, emphasizing the importance of maintaining continuity in culture, strategy and integration progress.

Strategic Stakes and Timing

UBS is navigating not just a leadership transition but key strategic challenges:

• The Credit Suisse integration is expected to be substantially complete by late 2026 or early 2027, aligning with Ermotti’s exit timeline.


• The bank is managing its response to regulatory pressure in Switzerland, where proposed capital requirement reforms could significantly reshape its balance sheet.

The successor will inherit both the legacy of one of the biggest banking restructurings in years and the task of positioning UBS for long-term growth amid evolving market and regulatory dynamics.

What’s Next at UBS

UBS’s board and chairman are expected to formalize a shortlist of candidates well ahead of Ermotti’s departure, with industry watchers forecasting a competitive process reminiscent of succession battles at Wall Street rivals. A decision may involve not only internal vetting but also strategic discussions with key shareholders and regulators.

As UBS continues its evolution, the battle for the CEO role reflects broader questions about direction, culture and how Europe’s largest wealth manager positions itself in a changing financial landscape.

Conclusion

The intensifying succession battle at UBS underscores the high stakes facing the bank as it prepares for life after CEO Sergio Ermotti. Having steered UBS through the historic takeover and integration of Credit Suisse, Ermotti leaves behind a transformed institution—but also one that must ensure continuity, stability, and strategic clarity. The focus on internal candidates reflects UBS’s desire to preserve institutional knowledge and maintain momentum during a sensitive phase marked by regulatory scrutiny and market uncertainty. Ultimately, the choice of the next CEO will not only determine UBS’s leadership direction but will also signal how Europe’s largest wealth manager plans to balance risk, growth, and governance in the post-merger era.