UBS - Corporate governance and compensation report

Compensation details and additional information for executive members of the BoD
CHF, except where indicated ^a
Name, function ¹	For the year ended	Base salary	Annual incentive award (cash)	Annual incentive award (shares - fair value) ^b	Discretionary award (options - fair value) ^c	Benefits in kind ^d	Contributions to retirement benefits plans ^e	Total
Peter Kurer, Chairman	2008	1,333,333	0	0	0	58,267	174,047	1,565,647
	2007
Marcel Ospel, Chairman	2008	666,667	0	0	0	80,755	87,023	834,445
	2007	2,000,000	0	0	0	307,310	261,069	2,568,379
Stephan Haeringer, Executive Vice Chairman	2008	1,125,000	0	0	0	108,846	195,802	1,429,648
	2007	1,500,000	0	0	0	111,808	261,069	1,872,877
Marco Suter, Executive Vice Chairman	2008
	2007	1,125,000	0	0	0	70,820	155,252	1,351,072
1 2008: Peter Kurer was the only executive member in office on 31 December; Marcel Ospel did not stand for re-election in April 2008 and Stephan Haeringer stepped down during the year as a member of the BoD. Both their payments are pro-rata for the four respective nine-month periods served in their functions. 2007: Marco Suter stepped down during the year as a member of the BoD. His 2007 payment was pro-rata for the nine-month period served as Executive Vice Chairman.

Explanations of compensation details for executive members of the BoD and members of the GEB:

a. Local currencies are converted into CHF using the exchange rates as detailed in “Note 39 Currency translation rates” in the financial statements of this report.
b. Values per share at grant: CHF 36.15 / USD 33.55 for shares granted in 2008 related to the performance year 2007. CHF prices are the average price of UBS shares at SWX Europe over the last 10 trading days of February, and USD prices are the average price of UBS shares at the NYSE over the last 10 trading days of February in the year in which they are granted.
c. No options were granted in 2009 for the performance year 2008.
d. Benefits in kind – car leasing, company car allowance, staff discount on banking products and services, health and welfare benefits and general expense allowances – are all valued at market price.
e. Swiss senior executives participate in the same pension plan as all other employees. Under this plan, employees receive a company contribution to the plan which covers compensation up to CHF 820,800. The retirement benefits consist of a pension, a bridging pension and a one-off payout of accumulated capital. Employees must also contribute to the plan. This figure excludes the mandatory employer’s social security contributions (AHV, ALV) but includes the portion attributed to the employer’s portion of the legal BVG requirement. The employee contribution is included in the base salary and annual incentive award components. In both the US and the UK, senior executives participate in the same plans as all other employees. In the US there are two different plans, one of which operates on a cash balance basis, which entitles the participant to receive a company contribution based on compensation limited to USD 250,000. This plan is no longer available to new hires. US senior executives may also participate in the UBS 401K-defined contribution plan (open to all employees), which provides a company matching contribution for employee contributions. In the UK, senior executives participate in either the principal pension plan, which is limited to an earnings cap of GBP 100,000, or a grandfathered defined benefit plan which provides a pension on retirement based on career average base salary (uncapped).

Remuneration details and additional information for independent members of the BoD
CHF, except where indicated ^a
Name, function ¹	Audit committee	HR & compensation committee	Governance & nominating committee	Corporate responsibility committee	Risk committee	Strategy committee	For the period AGM to AGM	Base fee	Committee retainer(s)	Benefits in kind	Additional payments	Total	Share percentage ³	Number of shares ^4,5
Ernesto Bertarelli, member		M	M				2008/2009	325,000	200,000	0	0	525,000	100	51,596
			M				2007/2008	325,000	150,000	0	0	475,000	100	14,677
Sally Bott, member ²		M		M			2008/2009	162,500	75,000	0	0	237,500	50	12,280
							2007/2008
Rainer-Marc Frey, member ²					M	M	2008/2009	162,500	150,000	0	0	312,500	50	16,158
							2007/2008
Bruno Gehrig, member ²	M						2008/2009	162,500	100,000	0	0	262,500	50	13,572
							2007/2008
Gabrielle Kaufmann-Kohler, member			C	M			2008/2009	325,000	250,000	0	0	575,000	50	29,731
			C	M			2007/2008	325,000	250,000	0	0	575,000	50	9,349
Sergio Marchionne, senior independent director, vice chairman						M	2008/2009	325,000	200,000	0	250,000 ⁶	775,000	100	76,228
		M					2007/2008	325,000	200,000	0	0	525,000	100	16,226
Rolf A. Meyer, member ²	M	M					2008/2009	162,500	150,000	0	0	312,500	50	16,158
	M	C					2007/2008	325,000	650,000	0	0	975,000	50	15,853
Helmut Panke, member		M			M		2008/2009	325,000	300,000	0	0	625,000	50	32,316
			C				2007/2008	325,000	250,000	0	0	575,000	50	9,349
William G. Parrett, member ²	M						2008/2009	162,500	100,000	0	0	262,500	50	13,572
							2007/2008
David Sidwell, member							2008/2009	325,000	450,000	0	0	775,000	50	40,072
							2007/2008					2008/2009	162,500	0
Peter Spuhler, member ²							2008/2009	162,500	0	0	0	162,500	100	15,945
		M					2007/2008	325,000	200,000	0	0	525,000	100	16,226
Peter R. Voser, member	C					M	2008/2009	325,000	400,000	0	0	725,000	50	37,487
	M						2007/2008	325,000	300,000	0	0	625,000	50	10,162
Lawrence A. Weinbach, member ²	M						2008/2009	162,500	100,000	0	0	262,500	50	13,572
	C						2007/2008	325,000	600,000	0	0	925,000	50	15,040
Joerg Wolle, member		C	M				2008/2009	325,000	300,000	0	0	625,000	50	32,316
			M				2007/2008	325,000	150,000	0	0	475,000	100	14,677
Total 2008												6,437,500
Total 2007												5,675,000
Legend: C = Chairman of the respective committee; M = Member of the respective committee
1 There were 11 independent BoD members in office on 31 December 2008. David Sidwell was appointed at the AGM on 23 April 2008 and Rolf A. Meyer, Peter Spuhler and Lawrence A. Weinbach stepped down from the BoD at the EGM on 2 October 2008. Sally Bott, Rainer-Marc Frey, Bruno Gehrig and Bill G. Parrett were appointed at the EGM on 2 October 2008. 2 Remunerations is for six months only, as such members either stepped down or were appointed on 2 October 2008. 3 Fees are paid 50% in cash and 50% in restricted UBS shares. However, independent BoD members can elect to have 100% of their remuneration paid in restricted UBS shares. 4 For 2008, shares valued at CHF 11.38 (average price of UBS shares at SWX Europe over the last 10 trading days of February 2009), attributed with a price discount of 15%, discount price CHF 9.67. The shares are blocked for four years. For 2007, shares valued at CHF 36.15 (average price of UBS shares at SWX Europe over the last 10 trading days of February 2008), attributed with a price discount of 15%, discount price CHF 30.75. The shares are blocked for four years. 5 Number of shares is reduced in case of the 100% election to deduct social security contribution. All remuneration payments are submitted to social security contribution/taxes at source. 6 This payment is associated with the newly created function of a senior independent director. In addition, one-off cash payments were made to the chair of the risk committee (CHF 500,000), the governance and nominating committee (CHF 300,000) and the human resources and compensation committee (CHF 200,000). These payments reflect the substantial workload of setting up the new risk committee, and expanding the mandate of the governance and nominating committee and the human resources and compensation committee.

Total payments to all members of the BoD
CHF, except where indicated ^a	For the year ended	Total
Aggregate of all members of the BoD	2008	10,267,240
Aggregate of all members of the BoD	2007	11,467,328

Total compensation for all members of the GEB
CHF, except where indicated ^a
Name, function	For the year ended	Base salary	Annual incentive award (cash)	Annual incentive award (shares; fair value) ^b	Discretionary award (options; fair value) ^c	Benefits in kind ^d	Contributions to retirement benefits plans ^e	Total
Marcel Rohner, Group Chief Executive Officer (highest-paid)	2008	1,500,000	0	0	0	161,768	152,934	1,814,702
Rory Tapner, Chairman & CEO Asia Pacific (highest-paid)	2007	1,291,960	4,501,900	4,501,904	0	10,256	900	10,306,920
Aggregate of all members of the GEB who were in office on 31 December 2008 ¹	2008	7,815,943	0	0	0	457,652	817,315	9,090,911
Aggregate of all members of the GEB who were in office on 31 December 2007 ¹	2007	6,995,885	15,305,667	15,305,708	0	532,706	912,974	39,052,939
Aggregate of all members of the GEB who stepped down during 2008 ²	2008	1,614,871	0	0	0	234,838	258,423	2,108,132
Aggregate of all members of the GEB who stepped down during 2007 ²	2007	2,511,947	23,042,376	6,750,036	0	406,567	275,635	32,986,561
1 Number and distribution to senior executives: 2008: 12 GEB members in office on 31 December. 2007: eight GEB members in office on 31 December. 2 Number and distribution of senior executives: 2008: includes four months in office as a GEB member for Peter Kurer, eight months in office for Marco Suter and 10 months for Joe Scoby. 2007: includes nine months in office for Huw Jenkins and Clive Standish and six months for Peter Wuffli.

Share and option ownership of members of the BoD at 31 December 2007/2008

Name, function ¹

For the year ended

Number of shares held

Voting rights in %

Number of options held

Potentially conferred voting rights in % ²

Type and quantity of options ³

Peter Kurer, Chairman

2008

416,088

0.025

372,995

0.022

xxx:

xxxv:

xli:

xlv:

85 256

95 913

2007

292,762

0.026

350,000

0.031

xxx:

xxxv:

xli:

xlv:

80 000

90 000

Sergio Marchionne, senior independent director, vice chairman

2008

87,926

0.005

0

0.000

2007

45,800

0.004

0

0.000

Ernesto Bertarelli, member

2008

89,434

0.005

0

0.000

2007

48,411

0.004

0

0.000

Sally Bott, member

2008

1

0.000

0

0.000

2007

Rainer-Marc Frey, member

2008

0

0.000

0

0.000

2007

Bruno Gehrig, member

2008

3,000

0.000

0

0.000

2007

Gabrielle Kaufmann-Kohler, member

2008

18,713

0.001

0

0.000

2007

3,303

0.000

0

0.000

Helmut Panke, member

2008

31,971

0.002

0

0.000

2007

13,206

0.001

0

0.000

William G. Parrett, member

2008

4,000

0.000

0

0.000

2007

David Sidwell, member

2008

1

0.000

0

0.000

2007

Peter R. Voser, member

2008

30,823

0.002

0

0.000

2007

11,580

0.001

0

0.000

Joerg Wolle, member

2008

41,509

0.002

0

0.000

2007

7,709

0.001

1 This table includes vested, unvested, blocked and unblocked shares and options held by members of the BoD including related parties. 2 No conversion rights are outstanding. 3 Refer to "Note 31 Equity participation and other compensation plans" in the financial statements of this report for more information.

Compensation paid to former members of the BoD and GEB¹
CHF, except where indicated ^a
Name, function	For the year ended	Compensation	Benefits in kind	Total
Georges Blum, former member of the BoD (Swiss Bank Corporation)	2008		101,579	101,579
	2007		90,803	90,803
Franz Galliker, former member of the BoD (Swiss Bank Corporation)	2008		69,596	69,596
	2007		62,174	62,174
Walter G. Frehner, former member of the BoD (Swiss Bank Corporation)	2008		74,663	74,663
	2007		73,061	73,061
Hans (Liliane) Strasser, former member of the BoD (Swiss Bank Corporation)	2008		32,673	32,673
	2007		42,311	42,311
Robert Studer, former member of the BoD (Union Bank of Switzerland)	2008		126,208	126,208
	2007		260,162	260,162
Alberto Togni, former member of the BoD (UBS)	2008	318,461	427,949	746,410
	2007	318,401	502,478	820,879
Philippe de Weck, former member of the BoD (Union Bank of Switzerland)	2008		109,703	109,703
	2007		129,701	129,701
Aggregate of all former members of the GEB ²	2008	0	171,180	171,180
	2007	0	257,791	257,791
Aggregate of all former members of the BoD and GEB	2008	318,461	1,113,551	1,432,012
	2007	318,401	1,418,481	1,736,882

1 Compensation or remuneration that is connected with the former members' activity on the BoD or GEB, or that is not at market conditions. 2 Includes two former GEB members.

Share and option ownership of members of the GEB at 31 December 2007/2008
Name, function ¹	For the year ended	Number of shares held	Voting rights in %	Number of options held	Potentially conferred voting rights in % ²	Type and quantity of options ³
Marcel Rohner, Group Chief Executive Officer	2008	711,366	0.042	1,055,043	0.063	xxv: xxx: xxxv: xli: xlv:	31,971 213,140 277,082 319,710 213,140
	2007	501,846	0.044	990,000	0.088	xxv: xxx: xxxv: xli: xlv:	30,000 200,000 260,000 300,000 200,000
John Cryan, Group Chief Financial Officer	2008	235,929	0.014	382,673	0.023	v: vi: vii: xii: xiii: xiv: xvii: xviii: xix: xxi: xxii: xxiii: xxvii: xxviii: xxix: xxxii: xxxiii: xxxiv: xxxviii: xxxix: xl: xlii: xliii: xliv: xlvi :	21,362 20,731 20,725 5,454 5,294 5,292 23,626 23,620 23,612 5,526 5,524 5,524 17,072 17,068 17,063 14,210 14,210 14,207 5,330 5,328 5,326 17,762 17,762 17,760 53,285
	2007
Markus U. Diethelm, Group General Counsel	2008	112,245	0.007	0	0.000		0
	2007
John A. Fraser, Chairman and CEO Global Asset Management	2008	583,812	0.035	1,144,808	0.068	i: viii: xv: xx: xxxi: xxxvi: xli: xlv:	56,013 76,380 127,884 127,884 170,512 202,483 213,140 170,512
	2007	461,764	0.041	1,074,232	0.095	i: viii: xv: xx: xxxi: xxxvi: xli: xlv:	52,560 71,672 120,000 120,000 160,000 190,000 200,000 160,000
Marten Hoekstra, Deputy CEO Global Wealth Management & Business Banking and Head Wealth Management US	2008	245,397	0.015	684,168	0.041	ii: iii: iv: ix: x: xi: xxvi: xxxi: xxxvi: xli: xlv: xlvii:	8,679 8,421 8,421 8,823 12,825 8,561 42,628 53,285 53,285 85,256 154,931 239,053
	2007
Jerker Johansson, Chairman and CEO Investment Bank	2008	521,544	0.031	753,410	0.045	xlviii: xlix:	745,990 7,420
	2007
1 This table includes vested and unvested shares and options held by members of the GEB including related parties. 2 No conversion rights are outstanding. 3 Refer to "Note 31 Equity participation and other compensation plans" in the financial statements of this report for more information.
Share and option ownership of members of the GEB at 31 December 2007/2008
Name, function ¹	For the year ended	Number of shares held	Voting rights in %	Number of options held	Potentially conferred voting rights in % ²	Type and quantity of options ³
Philip J. Lofts, Group Chief Risk Officer	2008	186,434	0.011	577,723	0.034	v: vi: vii: xii: xiii: xiv: xvii: xviii: xix: xxi: xxii: xxiii: xxvii: xxviii: xxix: xxxv: xli: xlv: xlvii:	11,445 11,104 11,098 1,240 5,464 1,199 9,985 9,980 9,974 1,833 1,830 1,830 35,524 35,524 35,521 117,090 117,227 85,256 74,599
	2007
Walter Stuerzinger, Chief Operating Officer, Corporate Center	2008	296,886	0.018	372,995	0.022	xvi: xxx: xxxv: xli: xlv:	31,971 63,942 85,256 95,913 95,913
	2007	209,442	0.019	350,000	0.031	xvi: xxx: xxxv: xli: xlv:	30,000 60,000 80,000 90,000 90,000
Rory Tapner, Chairman and CEO Asia Pacific	2008	827,809	0.049	1,379,533	0.082	vii: xv: xxiv: xxx: xxxv: xli: xlv:	281,862 213,140 213,140 170,512 159,855 170,512 170,512
	2007	514,365	0.046	1,294,486	0.115	vii: xv: xxiv: xxx: xxxv: xli: xlv:	264,486 200,000 200,000 160,000 150,000 160,000 160,000
Raoul Weil, Chairman and CEO Global Wealth Management & Business Banking, relinquished his duties on an interim basis	2008	315,698	0.019	432,409	0.026	xv: xxxv: xli: xlv:	53,285 102,281 127,884 148,959
	2007	212,934	0.019	405,752	0.036	xv: xxxv: xli: xlv:	50,000 95,976 120,000 139,776
Alexander Wilmot-Sitwell, Chairman and CEO, UBS Group EMEA and Joint Global Head IB Department	2008	304,655	0.018	353,807	0.021	xxxiv: xxxvii: xxxviii: xxxix: xl: xlv: xlvii:	53,282 2,130 35,524 35,524 35,521 106,570 85,256
	2007
Robert Wolf, Chairman and CEO, UBS Group Americas / President Investment Bank	2008	827,307	0.049	948,473	0.056	xx: xxxi: xxxvi: xli: xlv: xlvii:	287,739 213,140 127,884 106,570 106,570 106,570
	2007
1 This table includes vested and unvested shares and options held by members of the GEB including related parties. 2 No conversion rights are outstanding. 3 Refer to "Note 31 Equity participation and other compensation plans" in the financial statements of this report for more information.

Vested and unvested options held by independent members of the BoD and by members of the GEB on 31 December 2007 / 2008
Type	Number of options	Year of grant	Vesting date	Expiry date	Subscription ratio	Strike price
i	56,013	2001	20.02.2004	20.02.2009	1:1	CHF 46.92
ii	8,679	2002	31.01.2002	31.07.2012	1:1	USD 21.24
iii	8,421	2002	31.01.2004	31.07.2012	1:1	USD 21.24
iv	8,421	2002	31.01.2005	31.07.2012	1:1	USD 21.24
v	32,807	2002	31.01.2003	31.01.2012	1:1	CHF 36.49
vi	31,835	2002	31.01.2004	31.01.2012	1:1	CHF 36.49
vii	313,685	2002	31.01.2005	31.01.2012	1:1	CHF 36.49
viii	76,380	2002	31.01.2005	31.01.2012	1:1	USD 21.24
ix	8,823	2002	28.02.2002	28.08.2012	1:1	USD 21.70
x	12,825	2002	29.02.2004	28.08.2012	1:1	USD 21.70
xi	8,561	2002	28.02.2005	28.08.2012	1:1	USD 21.70
xii	6,694	2002	28.02.2003	28.02.2012	1:1	CHF 36.65
xiii	10,758	2002	28.02.2004	28.02.2012	1:1	CHF 36.65
xiv	6,491	2002	28.02.2005	28.02.2012	1:1	CHF 36.65
xv	394,309	2002	28.06.2005	28.06.2012	1:1	CHF 37.90
xvi	31,971	2002	28.06.2005	28.12.2012	1:1	CHF 37.90
xvii	33,611	2003	01.03.2004	31.01.2013	1:1	CHF 27.81
xviii	33,600	2003	01.03.2005	31.01.2013	1:1	CHF 27.81
xix	33,586	2003	01.03.2006	31.01.2013	1:1	CHF 27.81
xx	415,623	2003	31.01.2006	31.01.2013	1:1	USD 22.53
xxi	7,359	2003	01.03.2004	28.02.2013	1:1	CHF 26.39
xxii	7,354	2003	01.03.2005	28.02.2013	1:1	CHF 26.39
xxiii	7,354	2003	01.03.2006	28.02.2013	1:1	CHF 26.39
xxiv	213,140	2003	31.01.2006	31.01.2013	1:1	CHF 30.50
xxv	31,971	2003	31.01.2006	31.07.2013	1:1	CHF 30.50
xxvi	42,628	2003	31.01.2006	31.07.2013	1:1	USD 22.53
xxvii	52,596	2004	01.03.2005	27.02.2014	1:1	CHF 44.32
xxviii	52,592	2004	01.03.2006	27.02.2014	1:1	CHF 44.32
xxix	52,584	2004	01.03.2007	27.02.2014	1:1	CHF 44.32
xxx	532,850	2004	28.02.2007	27.02.2014	1:1	CHF 48.69
xxxi	436,937	2004	01.03.2007	27.02.2014	1:1	USD 38.13
xxxii	14,210	2005	01.03.2006	28.02.2015	1:1	CHF 47.58
xxxiii	14,210	2005	01.03.2007	28.02.2015	1:1	CHF 47.58
xxxiv	67,489	2005	01.03.2008	28.02.2015	1:1	CHF 47.58
xxxv	837,477	2005	01.03.2008	28.02.2015	1:1	CHF 52.32
xxxvi	383,652	2005	01.03.2008	28.02.2015	1:1	USD 44.81
xxxvii	2,130	2005	04.03.2007	04.03.2015	1:1	CHF 47.89
xxxviii	40,854	2006	01.03.2007	28.02.2016	1:1	CHF 65.97
xxxix	40,852	2006	01.03.2008	28.02.2016	1:1	CHF 65.97
xl	40,847	2006	01.03.2009	28.02.2016	1:1	CHF 65.97
xli	1,332,125	2006	01.03.2009	28.02.2016	1:1	CHF 72.57
xlii	17,762	2007	01.03.2008	28.02.2017	1:1	CHF 67.00
xliii	17,762	2007	01.03.2009	28.02.2017	1:1	CHF 67.00
xliv	17,760	2007	01.03.2010	28.02.2017	1:1	CHF 67.00
xlv	1,348,276	2007	01.03.2010	28.02.2017	1:1	CHF 73.67
xlvi	53,285	2008	01.03.2011	28.02.2018	1:1	CHF 32.45
xlvii	505,478	2008	01.03.2011	28.03.2018	1:1	CHF 35.66
xlviii	745,990	2008	01.03.2011	07.04.2018	1:1	CHF 36.46
xlix	7,420	2008	01.03.2011	06.06.2018	1:1	CHF 28.10

Loans granted to members of the BoD at 31 December 2007/2008
CHF, except where indicated ^a
Name, function ¹	For the year ended	Secured loans	Other loans granted	Total
Peter Kurer, Chairman ²	2008	1,261,000	0	1,261,000
	2007
Sergio Marchionne, Senior Independent Director, Vice Chairman	2008	0	0	0
	2007	0	0	0
Ernesto Bertarelli, member	2008	0	0	0
	2007	0	0	0
Sally Bott, member	2008	0	0	0
	2007
Rainer-Marc Frey, member	2008	0	0	0
	2007
Bruno Gehrig, member ²	2008	798,000	0	798,000
	2007
Gabrielle Kaufmann-Kohler, member	2008	0	0	0
	2007	0	0	0
Helmut Panke, member	2008	0	0	0
	2007	0	0	0
William G. Parrett, member ²	2008	1,167,659	0	1,167,659
	2007
David Sidwell, member	2008	0	0	0
	2007
Peter R. Voser, member	2008	0	0	0
	2007	0	0	0
Joerg Wolle, member	2008	0	0	0
	2007	0	0	0
Aggregate of all members of the BoD		3,226,659	0	3,226,659
1 No loans have been granted to related parties of the members of the BoD at conditions not customary in the market. 2 Secured loans granted prior to their election to the BoD.

Loans granted to members of the GEB at 31 December 2007/2008
CHF, except where indicated a
Name, function ¹	For the year ended	Secured loans	Other loans granted ²	Total
Markus U. Diethelm, Group General Counsel	2008	3,900,000	0	3,900,000
Joe Scoby, Group Chief Risk Officer ³	2007	0	3,145,796	3,145,796
Aggregate of all members of the GEB ⁴	2008	7,740,562	0	7,740,562
Aggregate of all members of the GEB	2007	3,487,000	3,145,796	6,632,796
1 No loans have been granted to related parties of the members of the GEB at conditions not customary in the market. 2 Guarantees. 3 Joe Scoby stepped down as Group Chief Risk Officer on 4 November 2008. 4 Including those members of the GEB who stepped down during 2008.

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