Ermotti is CEO of the best bank in Europe, and Orcel receives the biggest salary increase

(Bloomberg) – UBS Group AG CEO Sergio Ermotti was the top-income CEO of the continent’s largest bank last year, while Unicredit Spa CEO Andrea Orcel received the biggest pay raise.

Ermotti received CHF 14.9 million (€15.6 million) in 2024, according to Bloomberg News calculations, making him well above the average revenue of the CEOs of the 10 largest lenders in the region. Orcel lags behind at €13.2 million, thanks to a 32% increase, the steepest of his peers.

Last year, many European banks made profits on bumpers against the backdrop of higher interest rates, allowing them to strengthen investor spending. Their stock price has generally risen, and the rally even accelerated in the first quarter of 2025.

Ermotti and Orcel face criticism from investors about their salaries. Ubs and UniCredit believe that the compensation package is reasonable because of company performance, benchmark comparisons and strong competition for talent.

“This adjustment is necessary to develop a long-term commitment to fostering top CEOs,” Unicredit said in a statement on its website. The bank said it has seen “excellent profit growth” under Orcel’s leadership.

Unicredit said it will “ensure compliance with peer benchmarks, including UK banks,” which no longer need to comply with bonus caps relative to fixed wages. Unicredit’s annual general meeting approved the compensation policy.

UBS pays less than the 2024 salary allowed by internal rules in Switzerland than the internal rules. So far, Ermotti has pushed for the integration of Credit Suisse without major obstacles. Meanwhile, the bank is in a deadlock with the government at its future capital level.

Most of Ermotti and Orcel’s salary is related to long-term incentive programs, which means they won’t get money right away. The final value of the award may change based on the company’s share price.

Orcel served as head of UBS investment banking division during Ermotti’s tenure as CEO of Swiss lenders from 2011 to 2020. Two years ago, Ermotti shortly after UBS agreed to buy domestic rival credit Suisse in a government-launched rescue operation.

The rising profitability of European banks also allows them to award higher bonuses to other employees, with the increasing pool of variable compensation in most cases. Deutsche Bank AG released one of its biggest growth as the total prizes awarded last year increased by 26% from the previous ten-year high.

Most of the high salary occurred in investment banking, which recorded a strong year. This has led to a growing number of millionaires in bank revenue, although the number varies greatly among companies, which largely depends on how much they rely on investment banks to generate revenue.

Credit Agricole SA CEO Philippe Brassac and Ing Groep NV CEO Steven van Rijswijk are at the lowest point in the compensation list for CEOs of the top 10 banks in Europe. The two companies are relatively low in their dependence on income investment banking activities.

As a Dutch lender, ING is also subject to a strict bonus cap under local law. It said it strives to compete with tech companies for talent.

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

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