UBS shares are under pressure, facing a confluence of challenges ranging from legal issues and stricter capital requirements to internal personnel decisions that are raising questions about meritocracy. The bank’s stock slid over 2% in trading on , closing at USD 43.77, extending a recent downturn.
The latest scrutiny centers on a series of recent promotions within UBS’s human resources division, led by Stefan Seiler, the global head of personnel. While the bank asserts that promotions are based on a “strictly meritocratic process,” the appointments of three women to the role of Managing Director have sparked internal debate, according to reports. All three appointees have close ties to senior leadership.
One of the newly promoted Managing Directors is the sister of Michelle Bereaux, the bank’s new Compliance Chief, who sits on the Group Executive Board alongside Seiler. Another is Seiler’s own Chief of Staff, who has served in that role for the past three years. The third promotion, while also to a qualified candidate, reportedly did not involve a particularly competitive selection process.
A UBS spokesperson stated, “Beförderungen bei UBS basieren auf einem strikt meritokratischen Prozess, der die Rolle, Leistung und das Verhalten eines Mitarbeitenden berücksichtigt.” (Promotions at UBS are based on a strictly meritocratic process that considers the role, performance, and behavior of an employee.) The spokesperson further emphasized that gender and personal connections play no role in the decision-making process, stating, “The claim that promotions are based on personal contacts or favoritism is simply false.”
However, the concentration of promotions within a small circle raises questions about the objectivity of the process. The limited number of promotions – only three within Seiler’s department – further amplifies these concerns. While the bank may be focused on increasing female representation in leadership positions, the optics of these specific appointments are drawing criticism.
The internal personnel matters come at a difficult time for UBS, which is already grappling with significant headwinds. The bank is facing mounting legal challenges and is contending with new, more stringent capital rules imposed by Swiss regulators. In , UBS shares dropped 7% following analysts’ concerns about the impact of these new capital requirements, which could necessitate holding an additional USD 26 billion in capital.
Adding to the pressure, UBS experienced net outflows of approximately USD 9 billion in assets from its Americas wealth management unit during the third quarter of . While the bank appears to have stabilized the flow of financial advisors leaving the firm, the negative asset flow signals ongoing challenges in attracting and retaining clients in a highly competitive market.
The New York Post reported in that UBS executives were exploring a potential relocation of the bank’s headquarters to the United States, ostensibly to escape the regulatory oversight of the Swiss government. However, CEO Sergio Ermotti has publicly stated the bank’s intention to remain headquartered in Switzerland.
Further complicating matters, UBS has been adjusting its compensation plan for financial advisors, implementing changes that have been met with resistance from some. The bank cut bonuses for teams and adjusted its pay grid, squeezing lower-producing advisors in an effort to improve margins. While UBS reported improving pretax margins in wealth management for the Americas – reaching USD 416 million in the most recent quarter – the changes to the compensation plan initially led to expectations of advisor departures, a forecast the bank later appeared to walk back.
In a separate instance of internal maneuvering, a high-ranking manager within the Swiss division, reporting to Sabine Keller-Busse, was recently removed from her position after less than two years. Rather than being subjected to a standard reduction in force, the manager was reportedly reassigned to a new role within Seiler’s department, facilitated by his close relationship with Keller-Busse. This move involved displacing the existing “Head of Product & Innovation,” creating a new position with a somewhat ambiguous title: “Head of AI Initiatives” – despite the bank already employing numerous AI experts – and “Head Transformation Office & Business Management.”
The combination of regulatory pressures, financial performance concerns, and internal controversies is creating a challenging environment for UBS. The bank’s ability to navigate these issues will be critical to its future success, particularly as it seeks to integrate the legacy of its acquisition of Credit Suisse and maintain its position as a leading global financial institution. The Q4 2025 earnings call, scheduled for , will be closely watched by investors and analysts for insights into the bank’s strategy and outlook.
