Why Julius Baer is paying its CEO $18M he never even earned

Julius Baer has disclosed that Chief Executive Stefan Bollinger received total compensation of CHF 23.96 million ($30.3 million) in 2025.

The figure covers Bollinger’s first year running the Swiss private bank, with nearly CHF 15 million ($18 million) made up of replacement awards for pay he gave up when departing Goldman Sachs.

In other words, the bulk of the package was a recruitment cost rather than pay generated by a year of performance inside the Zurich-based bank.

A costly hire in a turnaround year

Bollinger was hired from Goldman Sachs in July 2024 and formally took over as CEO of Julius Baer in January 2025.

His appointment came after the Swiss bank spent much of the previous year dealing with the fallout from its costly exposure to René Benko’s Signa group.

The analysts said that Bollinger's appointment came as a signal of prioritization of stability and operational credibility after the Signa crisis.

But concerns were also raised about his lack of experience running a large listed company and his relatively limited exposure to Asia, a key growth market.

By the time Julius Baer reported full-year 2025 results in February, the bank was describing the year as a “successful transition year.”

Assets under management rose 5% to a record CHF 521 billion, helped by CHF 14.4 billion in net new money during the year.

Underlying profit before tax climbed 17% to CHF 1.266 billion, while the cost-income ratio improved to 67.6%.

However, reported net profit fell 25% to CHF 764 million, mainly due to one-off charges and CHF 213 million in net credit losses booked in 2025.

The contrast is important. Bollinger’s pay package lands at a moment when Julius Baer is trying to convince investors that the business is on a more disciplined footing.

Analysts back the strategy, but the optics are awkward

The analysts have largely backed Bollinger's appointment and the strategic reset Julius Baer is trying with this change.

Citi analysts viewed Julius Baer’s new targets under Bollinger as based on “fairly conservative assumptions."

Julius Baer’s net new money inflows for 2025 were broadly in line with forecasts from Zürcher Kantonalbank.

This suggests the bank’s operating performance had largely met expectations and did not significantly disappoint investors.

Still, the optics matter as the executives' pay remain a sensitive topic in Switzerland.

UBS kept CEO Sergio Ermotti’s 2025 compensation flat at CHF 14.9 million amid ongoing scrutiny over banker pay, leaving Bollinger’s CHF 23.96 million package notably higher.

Ultimately, the compensation structure sets up a critical test for Julius Baer’s upcoming annual general meeting.

Shareholders are being asked to accept a large one-off hiring cost at the same time the bank is cutting about 5% of its workforce, putting immediate pressure on Bollinger to deliver on his turnaround plan.

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