UBS Eyes C-Suite Rejuvenation

Long-standing UBS CEO Sergio Ermotti is expected to rejuvenate his top management before his exit.

CEO Sergio Ermotti defused the pressure cooker this summer: Hiring Credit Suisse’s Iqbal Khan to run UBS’ $2.1 trillion private bank, together with Tom Naratil, took the immediate sting out of questions on Ermotti’s future.

What Ermotti hasn’t done is refresh his top management, where the average age is 56 years old. In the next 12 to 18 months, the long-standing CEO is expected to lift several younger bankers into top management around him.

The move isn’t surprising per se: CEOs like to «put their house in order» before leaving. The move is likely to sweep out anyone who is older than Ermotti, who is 59. That puts Finance Chief Kirt Gardner and Swiss boss Axel Lehmann, who turned 60 this year, and top lawyer Markus Diethelm, 62, in focus.

Diethelm may enjoy a grace period until UBS can bury a messy French criminal probe of which he has overseen the defense. UBS didn’t comment on potential top management changes, and all three men declined to comment through a UBS spokesman.

The gentle clear-out provides an opening for a layer of top executives directly under Ermotti who are chomping at the bit. Some – like wealth executive Christine Novakovic – have already made an open play for a seat at the table.

Others are less well-known in Europe: Jason Chandler, who runs UBS’ American wealth arm, is viewed favorably in Zurich. So is Beatriz Martin, an acolyte of former investment bank head Andrea Orcel who has flourished since his departure more than one year ago.

Following the exit of Orcel last year, Martin lobbied for a bigger role – and won one. The Spanish-born banker added U.K. CEO to her remit of operating chief at UBS’ investment bank. Top finance executive Angus Graham, while little-known, is another candidate, particularly for Gardner’s job.

Besides Martin, several women are emerging as top contenders for more: veteran investment banker Ros L’Esperence, sidelined by Orcel but recently reinstated in a big job as global banking co-head (together with Javier Oficialdegui) is one.