UBS and CS is a lesson of the shareholders, threatened

Like every year, will give a talk at the annual General meetings (AGM) of the big banks, the remuneration of the management. To achieve this, UBS sees the 2. May a whole new site. The world's largest proxy advisers, ISS and Glass Lewis, recommend, refuse the discharge of the Board of Directors (BOD) and senior management (GL) for 2018. The reason for this is the court case with a possible billion buses in France.

"The shareholders can not judge for sure, whether it is in your best interest is the behavior of GL and VR in the past year approve," wrote Glass Lewis on behalf of UBS shareholders and recommends that you abstain from the discharge (Décharge). ISS is not calling directly for the rejection of the agenda item: "It would be in the interest of the shareholders, potential right-left paths." Both justify their assessment with the litigation of UBS against France. At the end of February, the Bank in Paris, was convicted of aiding tax evasion, a penalty payment of EUR 4.5 billion.

Swiss consultant comment even more critical

Bank chief Sergio Ermotti and Chairman Axel Weber hold UBS's innocent and believe, "that the judgment should be repealed", as you wrote to the shareholders. You have to go through the instances, which could take up to nine years. This had led "to increased uncertainty with respect to potential future claims during the long appeal process," wrote Glass Lewis. For UBS, the risk is generally higher than for the competition to be because of their past business held responsible. Such cases would "have a substantial impact on shareholder value".

The big international proxy advisors have the support of the Swiss service providers, Ethos and Inrate, which manifest themselves in the critical. Both deny even the Management of Credit Suisse for the 26. April the discharge. Inrate criticised "deficiencies in management and inadequate supervision". In 2018, there have been "investigations, legal cases, and buses", the "significant cost consequences and damage to Reputation" that would or could. Ethos calls for the deselection of Chairman Urs Rohner.

All eat of the remuneration lean in addition, both big banks for 2018. The excessive and complex, the Salaries are not justified, given the negative performance of Equities, 2018, and significant Fines. The banks would let this fine feeling to the shareholders and the Swiss Public to miss, writes Glass Lewis.

promising

"are actions We barely take note of the recommendation," according to CS plain. UBS has not commented on the criticism at all. Both bodies said to be in critical Votes at the AGM. With the rejection of the questionable items on the agenda of banks and experts don't expect but. The importance of proxy advisors has decreased, says Barbara Heller, CEO of Swipra, a service provider to the company management. According to information this newspaper, 73 percent of the shareholder base of Credit Suisse to the ISS, and 43 percent of Glass Lewis are based. However, only 5 percent follow the guidelines strictly, with the Rest forming their own opinion. The influence of the Swiss voting legal advisors, however, is marginal.

however, the refusal to grant discharge for the UBS-tip, that would be a vote of censure against the course of France course. With Décharge shareholders to waive a six-month right of action relating to the alleged activities of the management. However, this has no effect on facts which were omitted from the Management or deliberately concealed. Third parties have also complain at any time.

How hard it is to draw a Management for alleged failure to responsibility, and shows the case of Swissair. The Liquidator of the flight line was previously in charge of five processes against the Ex-management, all of which were rejected. Raiffeisen clarifies whether and against whom recourse can be made to claims for the loss of shops from the Era Vincenz claim. A legal opinion should provide clarity. Be granted Discharge for the year 2017 has not been issued until today.

(financial and economic)

Created: 22.04.2019, 09:00 PM