UBS Names Wealth Co-Heads in Management Shakeup

What You Need to Know

Rob Karofsky will run the bank’s U.S. business and jointly oversee wealth with Iqbal Khan.
Naureen Hassan, who earlier was head of the Americas, will retire from the wirehouse.

UBS Group AG appointed investment bank head Rob Karofsky to run its U.S. business and jointly oversee wealth with Iqbal Khan, in a management shakeup that paves the way for a race to succeed Chief Executive Officer Sergio Ermotti.

Khan, who previously had sole charge of the key wealth unit, will now also become president of the Asia Pacific region, the Zurich based bank said in a statement Thursday. Khan will relocate to Asia later this summer, the bank said.

UBS is revamping its executive board as it prepares to complete the legal merger with Credit Suisse and orient its strategy to key markets in the Americas and Asia.

Karofsky’s elevation helps implement Ermotti’s goal of expanding in the U.S. while Khan’s role enables him to focus on high-growth regions.

With these changes, Iqbal and Rob are the prime candidates for UBS’s CEO job, once Sergio Ermotti retires, likely in a few years,” said Andreas Venditti, an analyst at Vontobel.

Part of the rationale for the changes was to ensure that both Khan and Karofsky have more rounded experience running different areas of the bank to strengthen their offering in a potential CEO race, according to a person familiar with the matter.

The split also gives them distinct areas in which to prove themselves — UBS’s challenge in growing in the U.S. is a tough assignment, while the wealth business is the key focus for the bank, the person said, who asked not to be named discussing private details.

That ensures both executives will be highly motivated, the person said.

Bloomberg reported Karofsky’s promotion earlier. UBS shares were little changed in Zurich trading, and are up some 8% this year.

UBS remains focused on completing the integration of its former rival, and has pushed back the expected date for Ermotti to step down from his second term leading the bank to early 2027.

The chief executive is seeking to orient the bank for growth beyond the merger, and has said he’s working to build out its presence in the U.S. where the bank has long been sub-scale compared to Wall Street peers.