Corporate Governance

UBS fully complies with the SWX Swiss Exchange’s (SWX) regulatory requirement “Directive on Information Relating to Corporate Governance” (revised directive as of 1 January 2007), as well as the amended Swiss Code of Obligations (CO) with the newly introduced articles Art. 663bbis and Art. 663c paragraph three regarding transparency in compensation paid to members of the Board of Directors (BoD) and senior executives. In addition, UBS fully complies with the standards established in the “Swiss Code of Best Practice for Corporate Governance”, including the recently adopted appendix on executive compensation.

UBS also meets the New York Stock Exchange (NYSE) corporate governance standards applicable to listed foreign companies and complies with the overwhelming majority of NYSE standards for US domestic issuers.

UBS operates under a strict dual board structure, as mandated by Swiss banking law. The functions of Chairman of the BoD and Group Chief Executive Officer (Group CEO) are assigned to two different people, thus providing separation of powers. This structure establishes checks and balances and creates an institutional independence of the BoD from the day-to-day management of the firm, for which responsibility is delegated to the GEB. No member of one board may be a member of the other.