UBS invited people to its first general meeting since the CS takeover on Wednesday. Shareholders were bothered by CEO Sergio Ermotti’s high salary. Climate activists, on the other hand, called for clearer climate goals.
The income of UBS boss Sergio Ermotti caused dissatisfaction among many shareholders.
Denis Balibouse / Reuters
as is. UBS boss Sergio Ermotti’s salary and climate policy were the two dominant topics at the major bank’s general meeting on Wednesday.
Ermotti’s salary caused a lot of criticism in advance. According to the compensation report, UBS paid its CEO 1.875 million francs last year. There are also bonuses; the big bank has reserved 12.25 million francs for this.
At the general meeting in Basel’s St. Jakobs Hall, UBS President Colm Kelleher defended Ermotti’s high salary. “He has the most difficult job in the banking world – and he delivered.” Ermotti stabilized the CS and thus also Switzerland as a financial center within a few months, said Kelleher. It is therefore clear to the board of directors that Ermotti earned more wages than his predecessor Ralph Hamers. And anyway: UBS wouldn’t pay its managers as much as American banks. “But we have to remain competitive,” said Kelleher. The bonus program was developed with an external partner and complies with the usual rules of the financial industry.
“Ermotti has delivered,” says UBS President Colm Kelleher.
Georgios Kefalas / Keystone
CS shareholders in particular were frustrated. According to the votes, they felt “cheated”. A CS shareholder called the takeover of Credit Suisse a “scandal”. He lost a lot of money as a result. Another shareholder wanted to be released from all contracts with UBS.
During the vote, the shareholders accepted the annual report with 99 percent of the votes. They also approved the compensation report. However, it received comparatively fewer yes votes at 83.5 percent.
Climate activists are bothered by the sustainability report
In addition to the compensation report, the focus was also on UBS’s sustainability report. Climate activists took turns at the lectern and criticized the bank’s climate goals. The environmental protection organization Greenpeace called for the sustainability report to be rejected. This is insufficient, the goals are not formulated specifically enough and intermediate goals are missing, said a representative of the organization. Other environmental activists called on the bank to take action, for example in financing fossil fuels or coal mining.
UBS President Colm Kelleher appeased the votes. UBS sets high standards for sustainability. The shareholders had less to criticize about the sustainability report. They approved it with 93.3 percent yes votes.