Ubs Shareholders Raise Their Voices

By Author: Italo Zanotti
Total Articles: 62
Comment this article

UBS shareholders will refuse to turn the page on past mistakes and inflict a crushing defeat to the current leadership: the general assembly meeting in Basel denied discharge to the directors for 2007, rejecting the request of the vertices of the bank to release the responsibility for their top managers at the origin of disasters. Strong opposition has also led to the wage policy institute.
Shareholders who received a thunderous applause the vote on the 2007 (not with 52.75% of the votes represented), the assembly came after a marathon lasting over seven hours. Previously these had however approved the discharge for 2009 and 2008. In a first comment the President of the Board, Kaspar Villiger, said the decision to take note: this however does not change the current orientation of the leadership, contrary to initiate action for liability against the former manager. Until new facts emerge that position will not change, he added.
The result, however, give new life to those who, like the Ethos Foundation, has long been calling the bank to initiate civil litigation against former directors, because the individual owner ...
... by the courts - although now open - was unsustainable costs. "In the eyes of many shareholders you become complicit in the actions of your predecessors," warned the director of the organization, Dominique Biedermann. "You have a duty to distance itself from past leadership," he added. In its view the former manager - speaks of Marcel Ospel, Marcel Rohner and Peter Kurer - have committed serious errors, which have endangered the bank, the financial center and the entire country. This view is shared by dozens of small shareholders succeeded to the forum.
The vote has lost the smile Villiger, who in his first meeting as chairman of the Board of Directors (BoD) has focused heavily on irony, trying to sound like a sort of "banker human face." Former Federal Councillor FDP was presented with a bandaged finger and debuted at 10.30 with a slip, greeting those present to Zurich, Basel instead, but reacted immediately "was to test your attention," said . At St. Jakobshalle were 4,728 shareholders, representing 64.61% Votes: compared to previous years there were fewer people, but much more capital available, a sign that other institutional investors have traditionally not very active, this time took to the field . The Chief Executive Officer Oswald Grübel just wanted to reassure those present: UBS is back on track. Past mistakes were corrected and the institution has made house in order and now the bank is efficient, robust and has the right strategy. It is not yet able to regain the confidence of a time, especially in Switzerland, admitted the manager. Although declining, the outflow of funds is in fact continuing in 2010 and "we need realistic chance" that the phenomenon will continue, warned Grübel. For its part Villiger complained that UBS are constantly at the center of criticism, although in 2009, "the bank has done everything right." Also right, according to former Minister of Finance, the request for discharge for 2008 and 2007 even though "view the current proposal is politically unfortunate," he admitted. "We underestimated the public reaction to that request," continued Villiger, announced that the Council and the Federal Financial Market Supervisory Authority (FINMA) had pushed for scrapping the agenda item. But intense internal audits have revealed that continue to stay the discharge would have entailed more legal risks.
His warnings are not, however, been sufficient to convince increasingly riotous assembly, including the vexed position of leadership on an issue always hot, the salaries of gold. Despite the prospect of a return to profits in the area (in the first quarter, the positive result, before tax is expected to remain at 2.5 billion francs) and insurance for new leadership - "we became a bank," said both Villiger that Grübel - wage policy was in fact back to the center of heated discussions. "What makes a manager so irreplaceable that they can earn a hundred times more than a regular employee?" Asked a small shareholder. How can a bank rescued by the State distributes bonuses for 2009 amounted to 3 billion, despite a loss of 2.74 billion?
He and other Villiger gave a standard answer: UBS is in a competitive environment, wages are set by the market, critics do not realize the reality. But the director of Ethos, Dominique Biedermann, accused the former finance minister of failing to keep promises made in the past, "Mr. Villiger, she gave in to demands of management, instead of respecting the wishes of the shareholders," said .
The new wage system - which, by way of example, brought a salary of more than 13 million head of investment banking - has provoked fierce criticism: "These gentlemen have learned nothing," complained one shareholder. After hours of head washed, accusations and a few teasing, the heads of UBS have been right in this case, however, thanks to the silent majority: the 2009 remuneration report was approved with 54.72% of votes, 39 , 43% against and 5.85% of abstentions. The consultation was not binding, but the high percentage of 'no' shows that the opposition came also from foreign shareholders, about three quarters of those present.
No problem has caused rather general statements concerning the approval of the 2009 (yes with 97.53% of votes). Few emotions, despite the signs of wakefulness, also saw the appointment of the Chapter Board of Directors: after confirmation of outgoing - not re Sergio Marchionne and Peter Voser - the Assembly has elected as new member and the 89, 24% of votes, a number of Lufthansa, Wolfgang Mayrhuber, despite the opposition of Ethos, which criticizes the Austrian manager to be present in too many supervisory boards. Villiger has received support of 96%. To finish the assembly in favor of the creation of conditional capital for a maximum of 38 million francs.
Then, after more than eight hours but still have permission to write an unprecedented shareholder in Swiss history, all at home.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
For more news, please visit http://www.newsbusinessnews.blogspot.com