:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/6RXJ557WFRAPTLWWMV3EPDQWBQ.jpg)
UBS management faced backlash from shareholders at the bank’s AGM in Basel over their wages. More than half a dozen security guards were stationed around the speaker’s stand, with one guard equipped with an umbrella to catch any thrown objects from the audience. The 1,538 small shareholders in attendance expressed their frustration with the management’s salaries.
Despite the presence of security forces, UBS management was unable to shield themselves from the votes of displeased shareholders. This was the first time since the completion of the CS takeover in June 2023 that UBS management had faced shareholders. The AGM was filled with emotional and confusing outbursts from shareholders, directed primarily at CEO Sergio Ermotti. The shareholders’ votes were a mix of amusement, confusion, and frustration, with some resorting to dramatic gestures.
Criticism of UBS’s remuneration was stoically accepted by Chairman of the Board of Directors Colm Kelleher, who pointed out that UBS would never pay as much as American banks. The AGM also saw protests from climate activists demanding UBS to exit businesses tied to fossil fuels. However, these concerns were overshadowed by the focus on wages for UBS employees and executives.
Kelleher and Ermotti emphasized that UBS does not have an implicit state guarantee and rejected claims to such guarantees. The heated discussions around stricter capital requirements for UBS indicated a long political battle ahead for the bank. Despite resistance to stricter capital requirements, most of the AGM centered around displeasure over banker bonuses and high executive salaries. In conclusion, a significant no vote came from angry shareholders reflecting their dissatisfaction with UBS management compensation practices.
Overall, it seems that while there were other pressing issues discussed at the AGM such as stricter capital requirements for banks like UBS, most of it focused on criticizing CEO Sergio Ermotti and his team for their high salaries and bonuses.
