Ex-UBS CEO Hamers emerges as best-paid European bank boss in 2022

Former UBS Group AG boss Ralph Hamers was the highest-paid CEO among Europe's largest listed banks in 2022, data compiled by S&P Global Market Intelligence shows.

Hamers took home about €12.8 million in total compensation, up nearly 10% year over year. This included €2.5 million in base salary and €2.0 million in annual bonus.

The biggest chunk of Hamers' total compensation came from UBS' long-term incentive plan, a policy typically used to remunerate employees for reaching set company targets. At €4.9 million, Hamers also earned the highest level of variable pay among his peers in Europe.

UBS made a $7.63 billion profit in 2022 and announced a plan for a share buyback program of another $5 billion this year, building on the $5.6 billion already repurchased in 2022. Its return on equity rose 67 basis points to 13.23% for the year, while total returns rose 6.3%, Market Intelligence data shows.

Hamers joined UBS in November 2021 from Dutch bank ING Groep NV. His tenure was cut short in March when UBS acquired ailing peer Credit Suisse Group AG and rehired Hamers' predecessor, Sergio Ermotti, to oversee the integration.

A spokesperson for UBS referred to the bank's 2022 compensation report and declined to comment further.

Higher profits, higher pay

Of the sample of 20 bank CEOs, 13 received increases in their total compensation for 2022. This reflects improved profitability in the industry thanks to rapid increases in interest rates, with 16 banks among the sample reporting a higher return on average equity. The interest rate benefit is expected to continue in 2023 and 2024, analysts have said.

Italian bank Intesa Sanpaolo SpA hiked the total pay of its CEO Carlo Messina by 71.3% to €7 million, the highest increase in the sample. Messina was the third-highest-paid European bank CEO in the sample.

Deutsche Bank AG CEO Christian Sewing was the highest-paid in terms of base pay, which comprised €3.6 million of his total €4.40 million compensation.