Ermotti Is Europe’s Best-Paid Bank CEO, Orcel Gets Biggest Raise

(Bloomberg) — UBS Group AG Chief Executive Officer Sergio Ermotti was the highest-earning CEO across continental Europe’s biggest banks last year, while UniCredit SpA CEO Andrea Orcel got the largest raise.

Ermotti was awarded 14.9 million Swiss francs (15.6 million euros) in total compensation for 2024, putting him well above the average income for the CEOs at the region’s 10 largest lenders, according to calculations by Bloomberg News. Orcel wasn’t far behind at €13.2 million, thanks to a jump of 32% — the steepest among his peers.

Many banks in Europe last year posted bumper profits on the back of higher interest rates, enabling them to step up investor payouts. Their share prices generally increased strongly, with the rally even accelerating in the first quarter of 2025. 

Ermotti and Orcel have faced criticism from investors over their pay. UBS and UniCredit have argued that the compensation packages are justified, citing company performance, benchmark comparisons and strong competition for talent.

“This adjustment is necessary to foster long-term commitment of a top-tier CEO in a competitive market,” UniCredit said in a statement on its website, referring to the gain in Orcel’s pay in response to a critique from proxy advisor ISS. The bank said it has seen “exceptional profit growth” under Orcel’s leadership.

UniCredit said it would “ensure alignment with peer benchmarks, including UK banks” which no longer need to comply with an EU cap on bonuses relative to fixed pay. UniCredit’s annual general meeting has approved the remuneration policy. 

UBS kept Ermotti’s pay for 2024 lower than internal rules allow, amid intense scrutiny in Switzerland over banker compensation. Ermotti has pushed forward the integration of Credit Suisse so far without a major hitch. At the same time the bank is engaged in a standoff with the government over its future capital levels.

Most of the pay for Ermotti and Orcel is tied up in long-term incentive plans, meaning they won’t get the money right away. The final value of the awards can change depending on the firms’ share prices. 

Orcel used to work as head of UBS’s investment banking divisions during Ermotti’s first stint as CEO of the Swiss lender from 2011 to 2020. Ermotti returned to that role two years ago, shortly after UBS had agreed to buy domestic rival Credit Suisse in a government-engineered rescue operation. 

The rising profitability among Europe’s banks has also enabled them to award higher bonuses to its other employees, with the pools for variable compensation rising in most cases. Deutsche Bank AG posted one of the biggest increases as the total amount of bonuses awarded for last year, a 26% jump over the previous period to a decade high. 

Much of the soaring pay has occurred in investment banking, which recorded a strong year. That has resulted in an expanding number of income millionaires at banks, though the figure varies strongly between firms, depending largely on how much they rely on investment banking to generate revenue. 

Credit Agricole SA CEO Philippe Brassac and ING Groep NV CEO Steven van Rijswijk are at the bottom of the pay list for the CEOs at Europe’s ten biggest banks. Both firms have a comparably low dependence on investment banking activities for income. 

As a Dutch lender, ING is also subject to a stringent bonus cap under local law. It has said it struggles to compete with tech firms for talent. 

–With assistance from Sarah Jacob, Nicholas Comfort, Sonia Sirletti, Arno Schütze, Jorge Zuloaga, Claudia Cohen and Noele Illien.

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