Julius Baer shareholders reject bank's pay plan
By Katharina Bart
ZURICH (Reuters) - Julius Baer BAER.VX shareholders voted on Wednesday against the private bank's executive pay plan for 2012, the first time investors have rejected a Swiss firm's compensation proposals.
More than 63 percent of shareholders voted against the plan, which includes 6.68 million Swiss francs ($7.15 million) in 2012 compensation for Chief Executive Boris Collardi. Because the vote is non-binding, the pay plan will still go ahead.
"The board of directors will take the appropriate measures to work towards a positive vote at the next annual general meeting," Julius Baer said in a statement. A spokesman declined to elaborate on how the bank would respond.
Influential proxy advisory firm ISS had advised shareholders to vote down the pay plan, arguing it failed to give investors enough detail on bonuses, and did not defer shares awards for top managers, making them immediately available instead.
Baer's biggest shareholders are mainly large institutional fund houses like MFS Investment Management, Blackrock (BLK.N: Quote) and Harris Associates.
The vote comes a month after Swiss citizens voted in a referendum to introduce some of the world's strictest controls on executive pay, including giving shareholders a binding vote on compensation at listed companies in future.
It is the first time shareholders have rejected the pay plans of a company in Switzerland, where fury over pay packages has run high since the government had to rescue UBS in 2008 over major losses on risky investments blamed on a big bonus culture.
Rivals UBS UBSN.VX and Credit Suisse CSGN.VX, which both face shareholders votes in coming weeks, have drawn criticism in recent weeks for their 2012 bonus plans. Continued...