FILE PHOTO: The logo of Swiss bank UBS is seen in Zurich, Switzerland October 25, 2018. REUTERS/Arnd Wiegmann/File Photo
ZURICH (Reuters) – Shareholders of Swiss bank UBS Group should oppose its compensation report for 2018, proxy adviser Glass Lewis said, citing “pay-for-performance concern”.
Shareholders get a non-binding vote on pay policy at the bank’s annual meeting on May 2.
Glass Lewis said that while UBS had improved earnings last year, some financial indicators including earnings per share and return on equity lagged those of its Swiss and European peers.
“We are currently troubled by the significant fines the company is facing in Europe, particularly in France, as a result of money laundering litigations,” it added.
It also suggested shareholders abstain from approving the actions of the bank’s board and top management in 2018, especially in light of a French tax case that has prompted UBS to boost litigation provisions.
Glass Lewis said given uncertainty over ongoing investigations, it believes shareholders cannot “confidently determine whether it is in their best interests to ratify the acts of the members of the board and management for the past fiscal year at this time”.
UBS said in response that its compensation model had remained consistent