Are external candidates out of the running?

The Financial Times reports that a major bank is already ruling out external candidates for the new CEO position in a few years’ time. This decision has sparked debate and criticism. Sergio Ermotti, the current CEO of UBS, is nearing retirement age and has expressed his desire to hand over his position to a younger successor by early 2027. One of his key tasks is to identify and develop internal candidates within the company.

UBS Chairman Colm Kelleher emphasizes the importance of promoting a successor from within the company as a testament to the strength of the company’s culture. The question of who will succeed Ermotti has significant implications for UBS and the financial industry as a whole, attracting interest from the financial press.

According to The Financial Times, UBS has ruled out external candidates and is focusing on three internal candidates to succeed Ermotti. These candidates are expected to take on additional responsibilities within the bank to broaden their experience before the announcement of the successor in 2025. The rumored internal favorites include Iqbal Khan, Sabine Keller-Busse, and Beatriz Martin Jimenez.

While UBS has not confirmed this information, industry insiders are skeptical of completely excluding external candidates. It is considered a disadvantage to limit the search to internal candidates only, as external candidates could bring new perspectives and fresh ideas to the company. The example of Julius Baer, which is exclusively seeking external candidates for a new CEO, highlights the challenges of narrowing the search field.

The decision to focus on internal candidates may be a strategic move by UBS, but it also raises questions about the diversity of perspectives and experiences that external candidates could bring to the table. Ultimately, the choice of a new CEO will have significant implications for the future direction of the bank and its position in the financial industry.