Compensation, shareholdings and loans

Rigorous governance and approval process to ensure that no one participates in any decision affecting his or her own compensation

Shareholder alignment: a minimum of half of the annual incentive compensation is paid in the form of UBS shares. Stock options are awarded with a 10% price hurdle. In addition, UBS has the highest share ownership requirements for senior executives in its peer group

Pay-for-performance: performance is the primary driver of compensation decisions

Transparent decision-making process, based on Group and business group performance as well as individual performance and contribution to pre-defined targets

67% decrease in total senior executive compensation. This reflects the losses occurred on specific trading positions in 2007, which led to an overall net loss for the Group as a whole, but also the strong performance in UBS’s client-driven businesses

No stock options were awarded to senior executives for the 2007 performance year

No incentive award was granted to executive members of the Board of Directors as their incentive award is dependent on overall Group financial performance