Coronavirus fight – UBS executives will personally contribute about $5 million

The top management of UBS Group AG, committed to contribute their three months salary in fight against coronavirus, said the Chief Executive Officer of the Swiss bank Sergio Ermotti on Thursday after accepting a demand of suspending its dividend.

Each executive other than Ermotti at UBS receives an annual base salary of 1.5 million Swiss francs whereas same for Ermotti is 2.5 million francs, as said the spokeswoman. The total of the amount for three months’ salary of 13 executives becomes slightly more than 5.1 million Swiss francs which roughly equals to $5.3 million.

Ermotti, out of his own pocket, previously contributed an amount of 1 million Swiss francs to fight the virus in his home region of Ticino, an Italian-speaking region in Southern part of Switzerland from where the outbreak happened to spread in the country.

At the request of FINMA, Switzerland’s supervisory body for financial markets, UBS previously suspended the 50 percent of its 2019 dividend payment until later in the year but on Thursday it fully suspended the whole dividend payment for this year.

Talking about company’s 2020 dividend was too early, said Ermotti, who is to be replaced by the CEO of Netherland’s ING bank Ralph Hamers in November.

The bank is desirous not only to keep position of cash in hand more stronger but is also want to continue providing services to its clients and perform lending activities in an appropriate and necessary way and it is thinking more practically about it, said Ermotti in an interview with Bloomberg TV.

While remaining more prudent about the capital, bank will not ignore the needs of capital returns of shareholders, he added.

UBS is the largest bank of Switzerland with largest businesses of investment banking, asset management and wealth management in the world, and for the first quarter, bank is expecting to be making $1.5 billion more in profits.