UBS: The shareholders vote with Ethos and oppose the capital increase for the incentive plans of the employees
At the UBS annual general meeting today, shareholders refused the proposed capital increase for the employee incentive plans, demonstrating that they do not agree with an excessive remuneration system. The remuneration report was also not approved by 40% of votes while 47% of the shareholders did not discharge the board and executive management. Ethos had recommended to oppose the UBS remuneration report, the proposed capital increase as well as the discharge.
For the fourth consecutive year, a significant number of shareholders have opposed the remuneration report, a sign that shareholders have become more determined and critical toward the board over this issue. Dominique Biedermann, Executive Director of Ethos said: “The UBS remuneration system should be amended; in particular, the variable remuneration should be limited and tied to the base salary”.
Refusal to increase the capital for the incentive plans of the employees
The proposed capital increase to finance the employee incentive plans was refused by the shareholders. This proposal only received 62% approval that is less than the 66% affirmative votes required for a capital increase without pre-emptive rights. This demonstrates that the shareholders are no longer willing to support an excessive remuneration system.
Furthermore, 47% of the shareholders did not grant discharge to the board and executive management as they want to maintain the board's liability with regard to the CHF 1.8 billion loss due to the non authorised trading activities in the investment bank.