Apparently, UBS does not intend to appoint an external successor for the current CEO Sergio Ermotti. Instead, the Swiss bank aims to choose from a list of three internal candidates. This was reported by the «Financial Times» (article behind a paywall) on Monday, without citing specific sources.

UBS may announce the names of the three potential successors, or possibly even female successors, at the general meeting next year, as further information suggested.

Example of Morgan Stanley

Ermotti, who returned to his former position following UBS's acquisition of Credit Suisse (CS) last year (he was already CEO of the bank from 2011 to 2020), has reportedly committed to a period of three to five years to oversee the three-year integration of CS.

The succession issue was raised last year by UBS Chairman Colm Kelleher when he stated at a «Financial Times» conference, that the bank wanted to follow the example of his former employer, Morgan Stanley. Morgan Stanley had several internal candidates to choose from after long-time executive chairman James Gorman contemplated his impending retirement. The U.S. bank eventually chose Ted Pick. Gorman announced last Thursday that he would step down at the end of 2024.

Usual «suspects»

The internal frontrunners include Iqbal Khan, head of Wealth Management; Rob Karofsky, head of the Investment Bank; Bea Martin, who oversees UBS’s Non-Core and Legacy unit; and Sabine Keller-Busse, responsible for UBS's Swiss business. UBS declined to comment on the succession issue to the «FT.»