Ubs Group Ag · SIX:UBSG
Ubs — Shareholder Meeting (2019)
26 slides from Ubs's shareholder meeting presentation, 2019
Slide 1: UBS 2019 Annual General Meeting
UBS 2019 Annual General Meeting Axel A. Weber Chairman of the Board of Directors Spring 2019
Slide 2: Important information related to this presentation
Important information related to this presentation Forward Looking Statements: This presentation contains statements that constitute “forward-looking statements,” including but not limited to performance targets, expectations and ambitions, as well as management’s outlook for UBS’s financial perform
Slide 3: Topics for discussion
Topics for discussion Key highlights of 2018 financial performance and capital returns Annual General Meeting agenda items on compensation AGM: other agenda items, including succession for Board of Directors Corporate social responsibility / sustainability matters 2
Slide 4: Delivered positive operating leverage in FY18
Delivered positive operating leverage in FY18 Diversified business model delivered strong profit growth in variable conditions +16% 2% higher operating income +273 (223) 4,516 (33) 1% lower +590 operating 3,908 expenses 969 +2,939 Net profit Net impact from Net profit Operating Operating Litigation3
Slide 5: FY18 capital generation of 4bn
FY18 capital generation of 4bn Highly capital-generative business model Strong capital generation Strong capital position 4,013 Tier 1 17.5% 762 Repurchased 48m shares AT1 4.6% Accrued dividend at 2,648 CHF 0.70 per share CET1 12.9% 5.1% 1.3% Increased CET1 capital 3.8% 603 by 0.6bn FY18 Capital rat
Slide 6: 2019 AGM – Say-on-Pay agenda items
2019 AGM – Say-on-Pay agenda items Say-on-Pay agenda items Summary of key changes / proposals including rationale 2. Advisory vote on the UBS Group AG Compensation Report 2018 8.1. Approval of the maximum aggregate amount of compensation for › No change to the maximum aggregate amount of compensatio
Slide 7: 2018 performance award pool
2018 performance award pool GEB variable compensation down 1% YoY › Delivered strong financial results in › 1% YoY decrease in proposed FY18 › Total Group variable compensation overall challenging market variable compensation for the GEB, performance award pool of 3.1bn conditions, reflecting the st
Slide 8: 2018 compensation framework for GEB members
2018 compensation framework for GEB members Payout structure remains unchanged › Up to 20% of the annual performance award paid in the form of cash and at least 80% deferred over a period of 5 years¹, of which at least 50% granted under the EOP and the remaining 30% under the DCCP Illustrative examp
Slide 9: Performance assessment for the Group CEO
Performance assessment for the Group CEO Performance award is based on the achievement of both financial targets and goals related to Pillars, Principles, and Behaviors › The BoD Chairman and the Compensation Committee establish objectives, evaluate performance and propose the total individual compe
Slide 10: Total compensation for the Group CEO over time
Total compensation for the Group CEO over time Awarded vs. realized pay illustrates the impact of deferrals over time; no upward leverage › Realized pay is the natural culmination of awards granted and approved by shareholders in previous years. Since our compensation plans have no upward leverage,
Slide 11: 2019 AGM – other agenda items
2019 AGM – other agenda items Other agenda items Summary of key changes Approval of the UBS Group AG management report and 1. consolidated and standalone financial statements for the financial year 2018 › 3.1. On a standalone basis, UBS Group AG recorded a net profit of USD 3,171 million Appropriati
Slide 12: Proposed ordinary dividend of CHF 0.70 per share for FY18
Proposed ordinary dividend of CHF 0.70 per share for FY18 Increasing capital returns to our shareholders Share buy-back (CHF) Special dividend (CHF) 2018 dividend and total return Ordinary dividend (CHF) › CHF 0.70 ordinary dividend per share proposed for the financial year 2018 › Dividend payout ra
Slide 13: Shareholder returns of 3.4bn for FY18
Shareholder returns of 3.4bn for FY18 Proposed ordinary dividend of CHF 0.70 per share for FY18 Profits 19bn Adjusted PBT 6.7 ex-litigation 5.9 CAGR +3% 6.1 CAGR +18% 6.0 cumulative net profits CAGR +21% 3.1 2014-2018 Adjusted PBT Reported PBT 2.8 FY14 FY15 FY16 FY17 FY18 Shareholder returns1, 2 and
Slide 14: Board of Directors – UBS Group AG
Board of Directors – UBS Group AG › The Governance and Nominating Committee uses a skills / experience matrix as a tool to identify any gaps in the competencies considered most relevant to the BoD, taking into consideration the firm’s business exposure, risk profile, strategy and geographic reach ›
Slide 15: Election of new members to the Board of Directors
Election of new members to the Board of Directors 6.1. William C. Dudley 6.2. Jeanette Wong Motion Motion The Board of Directors proposes that William C. The Board of Directors proposes that Jeanette Dudley be elected as a member of the Board of Wong be elected as a member of the Board of Directors
Slide 16: Succession planning
Succession planning One of the key responsibilities of both the BoD and the GEB Across all divisions and regions, an inclusive talent development and succession › Our strategy and the business environment planning process is in place that is intended to foster the personal development constitute the
Slide 17: UBS in society
UBS in society Driving change that matters to create long-term value for clients, employees, investors and society Governance and principles Sustainable investing Client and corporate philanthropy › BoD's Corporate Culture and Responsibility › Total sustainable investing (SI) assets represented › Su
Slide 18: Supporting materials
Appendix Supporting materials
Slide 19: Selection of frequently asked questions (1/2)
Selection of frequently asked questions (1/2) Summary of frequent questions we received from different stakeholders and our responses Share price development How are share price developments reflected in pay decisions? › Compensation is awarded based on the assessment of performance achievement whil
Slide 20: Selection of frequently asked questions (2/2)
Selection of frequently asked questions (2/2) Summary of frequent questions we received from different stakeholders and our responses Deferral vs. LTI Why does UBS use a deferral instead of a long-term incentive (LTI) plan? › The Compensation Committee regularly reviews our framework to confirm it r
Slide 21: Pay delivery subject to performance conditions
Pay delivery subject to performance conditions Our compensation framework is designed to pay for performance and create sustainable shareholder value › To further promote sustainable performance, our deferred compensation components include malus conditions. These enable the firm to forfeit unvested
Slide 22: Group Executive Board compensation framework
Group Executive Board compensation framework Annual performance awards subject to shareholder approval Framework 2018 figures Performance award cap – CEO 5x fixed compensation¹ 4.5x Performance award cap – other GEB members 7x fixed compensation¹ 3.0x Performance award cap – full GEB pool 2.5% of ad
Slide 23: Performance award pool and expenses
Performance award pool and expenses Performance award pool reflects a decrease of 1% from 2017 while expenses decreased by 5% (5%) (1%)1 3.2 3.2 3.1 Amortization 3.0 Amortization (0.7) 0.7 of prior-year (0.7) 0.5 of prior-year awards awards Awards for Awards for performance year performance year def
Slide 24: Board of Directors – UBS Group AG
Board of Directors – UBS Group AG › The Board of Directors (BoD), led by the Chairman, is composed of 12 members with ultimate responsibility for the success of the Group › The BoD proposes the Chairman, who is elected by shareholders at the AGM, as are the other individual BoD members and the membe
Slide 25: Strong capital generation
Strong capital generation USD 19bn of capital generation since 2014 despite litigation and regulatory costs Cumulative temporary regulatory 5.6 demand and external fees for litigation and investigations1 4.9 Cumulative litigation provisions2 14.0 Cumulative shareholder returns3 5.0 CET1 capital buil
Slide 26: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strate