UBS announced on Thursday that it will split its top wealth management position as part of its executive board restructuring, while also appointing a new head of investment banking.
Rob Karofsky will become the head of the Americas and will serve as Co-President of Global Wealth Management alongside Iqbal Khan, who will be responsible for the Asia-Pacific region.
Khan will relocate to Asia to take up his new role starting September 1. Both Khan and Karofsky are viewed as contenders to succeed UBS CEO Sergio Ermotti, who is expected to step down in early 2027.
The bank also appointed George Athanasopoulos and Marco Valla as Co-Presidents of Investment Banking, changes that will take effect on July 1.
UBS is currently in the process of integrating its long-time rival Credit Suisse. This announcement comes before the merger of the two banks' parent companies, which is expected to be completed on Friday. UBS acquired Credit Suisse last year.
The merger of the parent companies is expected to allow UBS to begin more complex integration phases, such as consolidating IT systems, migrating Credit Suisse clients, and reducing the workforce by over 110,000 employees.
As part of the restructuring, former Credit Suisse CEO Ulrich Koerner will retire later this year.
In a statement, Ermotti said these new appointments focus more on UBS's long-term priorities and growth prospects, particularly in the Americas and the Asia-Pacific region.
Last month, Ermotti told Reuters in an interview, "Our goal is to significantly increase the chances of internal candidates succeeding the CEO."
According to recent media reports, Ermotti has rejected appointing an external successor and plans to promote an internal candidate, similar to his previous departure from UBS in 2020.
Vontobel analyst Andreas Venditti believes these personnel changes are more profound than expected.
He said, "With these changes, Iqbal and Rob become the main candidates for the UBS CEO position."
Damian Vogel will replace Christian Bluhm as Chief Risk Officer, with Bluhm continuing in the company as an advisor.
Naureen Hassan, President of UBS Americas, will leave on July 1, marking the departure of several female executives from the bank since last year.
