UBS Shareholder Engagement Presentation Deck
LTIP now applied to GEB members only; performance metrics unchanged
Absolute performance metric: return on CET1 capital (ROCET1); reflects our strategic return ambitions and considers our financial targets, as well
as our cost of capital as outlined below
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The required ROCET1 performance for a maximum payout is set at 18%, which represents the upper end of our target range, without encouraging
excessive risk-taking
The required performance threshold for the minimum payout is 8% and was increased from 6% starting with LTIP awards granted in 2022 for 2021
performance. The mid-point of the payout thresholds appropriately reflects our cost of equity
Relative performance metric: relative Total Shareholder Return (rTSR)
The metric compares the total shareholder return (the TSR) of UBS with the TSR of an index consisting of listed Global Systemically Important Banks (G-SIBs)
as determined by the Financial Stability Board (excluding UBS Group); the G-SIBS are independently defined and reflect companies with a comparable risk
profile and impact on the global economy
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The linear payout design between threshold and maximum level supports our growth ambitions and our focus on delivering sustainable performance
without encouraging excessive risk-taking
The index, which includes publicly traded G-SIBS is equal weighted, calculated in Swiss francs, and maintained by an independent index provider, so as to
ensure independence of the TSR calculation
The payout interval of ±25 percentage points (pps) versus the index performance demonstrates our ambition of delivering attractive relative returns to
shareholders. The linear payout and the threshold level set below index performance further support sustainability of results and prudent risk-taking
LTIP payout illustration
The final number of notional shares vesting will vary based on the achievement versus
the performance metrics
Linear payout between threshold and maximum performance
Vesting levels are a percentage of the maximum opportunity of the LTIP and cannot
exceed 100%
Full forfeiture for performance below the predefined threshold levels
UBS
Below threshold (<8%)
Full forfeiture
(payout 0%)
ROCET1 (weight: 50%)
Below threshold (<-25 pps)
Full forfeiture
(payout 0%)
Portion vesting - RoCET1
Portion vesting - rTSR
50%
40%
30%
20%
Partial vest
(payout between 33% and <100%)
10%
0%
rTSR (weight: 50%)
Performance metric: average ROCET1 (50% of award)
Threshold (8%) up to
maximum (<18%)
50%
40%
30%
20%
10%
0%
I
Performance metric: rTSR vs. G-SIBS index (50% of award)
Threshold (-25 pps) up to
maximum (+25%)
Partial vest
(payout between 33% and <100%)
8%
ROCET1
(25 pps)
from index
I
18%
ROCET1
pps
+25
from index
Maximum and above (≥18%)
Full vest
(payout 100%)
Maximum and above (≥ +25 pps)
Full vest
(payout 100%)
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