Norway’s sovereign wealth fund, UBS’ second-largest shareholder, has supported UBS’ strategy to enhance the appeal of its Additional Tier 1 (AT1) bonds and approved CEO Sergio Ermotti’s compensation package. This move strengthens UBS’ efforts to bolster its capital buffers and aligns with Swiss regulators’ requirements amid its integration with Credit Suisse. However, shareholders may face potential dilution in a crisis scenario. AT1 bonds, crucial for absorbing shocks in capital levels, gained prominence after the 2008 financial crisis, with UBS adjusting bond terms to enhance investor attractiveness.
Norway Wealth Fund Backs UBS’ Capital Plan and CEO’s Pay Package
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