UBS AGM: Heated Debates, Criticism and Emotional Outbursts over Executive Compensation

Basel’s AGM was marked by heated debates and criticism from shareholders over UBS management’s wages. The 1,538 small shareholders in the room, mostly of retirement age, expressed their discontent with the management’s salaries. Security forces were present at the event to prevent any disruptions, with one guard equipped with a black umbrella to catch any thrown objects from the audience.

The criticisms directed at UBS’s CEO Sergio Ermotti reflected poorly on the bank’s reputation. Despite this, the security forces could not shield UBS management from the votes of the small shareholders. It was the first time since the completion of the CS takeover in June 2023 that UBS management faced its shareholders.

The AGM saw emotional and confusing outbursts from climate activists demanding UBS to exit businesses tied to fossil fuels. The shareholders’ focus on wages overshadowed other pressing issues such as stricter capital requirements facing UBS as per the Federal Council’s report on big bank regulation. Kelleher and Ermotti emphasized that UBS does not have an implicit state guarantee, rejecting claims of such guarantees.

Despite resistance to stricter capital requirements, the AGM largely centered around dissatisfaction over banker bonuses and high executive salaries. In the end, a significant no vote was cast on the compensation report by angry shareholders, reflecting their dissatisfaction with UBS management.