UPDATE: Ethos Recommends UBS Holders Reject New Pay Plan At AGM
March 25 2009 - 6:43AM
Dow Jones News
Shareholder activist Ethos Wednesday called for UBS AG (UBS)
shareholders to reject an overhaul to the Swiss bank's pay
practices at an April 15 general meeting.
Geneva-based Ethos said the new system, which came after a
review of hefty executive pay packages despite massive losses,
might still lead to high pay because UBS hasn't set a cap on base
salary.
UBS, which declined to comment Wednesday, agreed last year to
put the pay plan to an advisory shareholder vote, meaning it is
non-binding.
The recommendation from Ethos, influential because it advises
many Swiss pension funds, comes as scrutiny on executive pay
intensifies. In an advisory vote, shareholders of Roche Holding AG
(ROG.VX) recently approved the Swiss drugmaker's executive pay.
For UBS, Ethos wants to limit bonus pay to 50% of overall
compensation, saying the absence of a cap could allow bonuses to
reach as much as 90% of overall pay.
"Both the shareowners and the regulatory authorities have
recently put into question remuneration systems allowing for
particularly high variable parts that can potentially create the
wrong incentives and lead to excessive risk-taking," Ethos said in
a statement.
Company Web site: http://www.ethosfund.ch
-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043;
katharina.bart@dowjones.com