The investment bank chief, Andrea Orcel, received 11.4 million Swiss francs, or about $13 million, last year, including a base salary of 1.5 million Swiss francs and a cash bonus of 1 million Swiss francs. The bulk of his compensation was in company stock.
Mr. Ermotti received 10.7 million Swiss francs, including a base salary of 2.5 million Swiss francs and a cash bonus of 1 million Swiss francs. He received 8.9 million Swiss francs in total compensation in 2012, when he was the highest-paid executive.
Mr. Orcel was named the sole chief executive of the investment bank in November 2012 after joining UBS from Bank of America Merrill Lynch in July of that year.
“He guided the business and its employees through a period of intense and sometimes challenging transformation following the announcement of the acceleration of the implementation of the firm’s strategy in late 2012,” UBS said.
The bank cut 10,000 jobs in 2012 as part of an effort to transform itself into a smaller, more profitable firm focused on wealth management and away from more risky trading activity in its investment bank.
In 2013, UBS reported profit of 3.17 billion Swiss francs, compared with a loss of 2.48 billion Swiss francs in the previous year.
In the annual report, the bank cited the strong financial performance under Mr. Ermotti and “progress towards the successful implementation of the firm’s ambitious strategy — a strategy focused on sustainable performance, best-in-class capital ratios, and vigilance on operational risk and on effectiveness and efficiency.”
The escalating pay of bankers has been a top concern for politicians in Europe as they try to discourage riskier behavior from financial institutions.
Last week, the European Commission adopted a framework for bonus caps for bank employees.
On Thursday, the Bank of England unveiled proposals to expand its ability to claw back bonuses from bankers and their bosses for up to six years when there is either misconduct, actions that lead to significant losses or failures of risk management.