Institutional Shareholder Services (ISS), a leading proxy advisory firm, has advised shareholders of Swiss private bank Julius Baer (BAER.S) to vote against the proposed board remuneration package, citing excessive pay increases without sufficient justification.
The proposal includes a 19.2% increase in total board compensation to 4.4 million Swiss francs ($4.98 million) for the coming year, with the chairman’s pay set to double to 2 million Swiss francs ($2.26 million). ISS expressed concerns that, despite the board shrinking from nine to eight members, the chairman’s compensation is being significantly raised without a clear rationale.
Julius Baer has declined to comment on the matter. 
The proposal comes as the bank prepares for leadership changes, with former HSBC CEO Noel Quinn nominated as the next chairman, pending shareholder approval at the annual general meeting on April 10. He is set to replace Romeo Lacher, who announced his resignation in January following the bank’s substantial losses tied to the collapse of property group Signa.
