UBS CEO Sergio Ermotti’s 2012 pay of $9.3m was dwarfed by the $26.1m in cash and stock investment bank head Andrea Orcel got on joining the firm.
Bloomberg reports that Ermotti’s pay, which includes a base salary of $2.62m, compares with $6.66m in the previous year, when he joined the executive board in April and took over as CEO after Oswald Gruebel resigned in September, the firm said Thursday in its annual report. Ermotti replaced wealth management Americas head Robert J. McCann as the highest paid member of UBS’s board.
Orcel got $6.66m in deferred cash and 1.76m UBS shares with grant date fair market value of $19.4m, the bank said, without disclosing his annual compensation.
The banker, 49, joined UBS in July to co-head the investment bank with Carsten Kengeter before taking over as the unit’s sole chief in November after UBS decided to exit most debt-trading businesses and cut 10,000 jobs over three years to concentrate on money management.
Orcel spent 20 years at Bank of America’s Merrill Lynch before joining UBS and was among the biggest dealmakers when the U.S. firm was independent.
One banker told Here Is The City: 'Orcel's package may appear on the high side, but he would have been compensated for losing his stock awards when he left Bank of America. As such, it's a one-off recruitment cost.
'Orcel is one of the world's top dealmakers, and his arrival at UBS sent a strong message about the future of the investment bank. He has already made his mark as a leader, and has also brought in significant business'.
Wealth management Americas head McCann, who turns 55 Friday, and was the highest-paid member of the executive board in 2011 with $9.62m, received $8.97m for 2012, according to the report.
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