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Shareholders of big bank UBS had much to vote on at the firm’s annual meeting yesterday, including confirming the new chairman of the board, and his pay package.
Former German central banker Axel Weber received approval from nearly 99 percent of shareholders.
A majority agreed to bank pay-packages, and a 4 million franc signing-on fee for Weber.
But a third of shareholders rejected it, signaling lingering displeasure.
Weber defended the pay-out to public television.
“When I signed on with UBS, it was important for me that the board president was invested in the long-term performance of the company, from a governance aspect,” he said. “That’s why the bulk of my pay package is in 200,000 shares of UBS. I have to pay tax on that right away, which will be paid from this money, and I will use my own money to pay the rest.”
Weber said it is important for bank management to be interested in the long-term performance of the bank.
At the annual meeting, UBS management only barely got a majority of shareholders to approve executive performance from last year, in the wake of a $2 billion rogue-trading scandal.