Shareholders’ Rage at UBS’s Compensation Practices: Criticism, Concerns and Confusion at Basel AGM

At UBS’s AGM in Basel, shareholders were critical of the bank’s management’s salaries. The meeting was held in St. Jakobs Hall on Wednesday morning, with more than half a dozen security guards positioned around the speaker’s stand to prevent any disruptions. The 1,538 small shareholders in attendance, mostly of retirement age, expressed their frustration with the management’s compensation packages.

The criticism of UBS’s remuneration was met with stoicism by Chairman of the Board of Directors Colm Kelleher, who reminded the shareholders that UBS would never be able to pay as much as American banks due to regulatory constraints. However, this did little to appease the shareholders who were also concerned about climate change and other pressing issues facing the bank.

During the AGM, there were emotional and confusing outbursts from some shareholders who were critical of UBS CEO Sergio Ermotti. Despite these criticisms, however, Kelleher and Ermotti emphasized that UBS does not have an implicit state guarantee and rejected claims of such guarantees.

The heated discussions around stricter capital requirements for UBS highlighted a long political battle ahead for the bank. While some shareholders were focused on wages and bonuses, others were concerned about other pressing issues such as stricter capital requirements and climate change. In the end, a significant no vote from angry shareholders reflected their dissatisfaction with UBS management’s compensation practices.