Julius Baer faces opposition to additional millions for new CEO
Published: Friday, Apr 5th 2024, 14:40
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At next week's Annual General Meeting, Bank Julius Baer will face opposition to an additional million-euro sum for the search for a new CEO. The proxy advisor Ethos recommends that shareholders reject a corresponding proposal. Ethos also intends to refuse to discharge Julius Baer's management.
In the search for a successor to CEO Philipp Rickenbacher, who resigned in the wake of the Signa debacle, the Board of Directors of the Zurich private bank wants greater financial leeway: it is therefore proposing to shareholders that any additional amount for a new CEO be calculated not on the basis of the current year's reduced management remuneration but on the basis of the more generous bonuses approved in the previous year.
14 million instead of 7 million
If the proposal is accepted, the maximum amount that the Board of Directors can raise for the "appointment and appropriate remuneration" of a new CEO - including any lost bonuses from a previous employer - would be around CHF 14.5 million instead of "only" CHF 7.2 million.
According to the invitation to the AGM, this would ensure that the Board of Directors would not have to convene an Extraordinary General Meeting when appointing a CEO or other members of the Executive Board. Former CEO Rickenbacher received compensation of CHF 6.03 million in 2022, but only CHF 1.72 million for the 2023 financial year.
The Ethos investment foundation does not agree with the proposal: in its voting rights report published online, it announces that it will vote against the proposal. The foundation, which advocates sustainable investing, also recommends voting against the discharge of the Board of Directors and Executive Board, as the web portal "Tippinpoint" also reported on Friday.
External CEO search
Bank Julius Baer has been hit hard by the bankruptcy of Austrian investor René Benko's Signa Group. The write-off of Signa loans amounting to over CHF 600 million resulted in a halving of profits for the 2023 financial year. CEO Philipp Rickenbacher resigned at the beginning of February.
The private bank is currently being managed by the previous deputy CEO Nic Dreckmann as interim CEO. The Board of Directors had made it clear to the media that an external person would be sought to fill the position of CEO.
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