Boris F.J. Collardi, CEO of Julius Baer since 2009, has seen an increase of 5.2% year-on-year in his compensation.
There was no increase to the base salary from 2015 to 2016, which was set by the compensation committee at CHF 1.5 million and was approved by the shareholders at the 2016 annual general meeting.
His total compensation for the year stands at CHF 6.49 million.
Total compensation of members of the executive board, including the CEO, consists of a base salary in cash, a cash-based variable compensation component (deferred bonus plan - DBP) and a performance-based variable component (equity performance plan - EPP) in the form of equity.
The CEO has to own 100,000 vested Julius Baer group shares.
In comparison to 2015, the total reported DBP paid to the CEO increased by 23.8% relative to 2015; however, the CEO’s 2015 total variable compensation was curtailed by 10% to take account of the US cross-border tax litigation.
Under DBP, Collardi will be receiving CHF 1.1 million in cash and CHF 2.1 million in EPP.
For DBP grants made in respect of the performance year 2015 and thereafter, the members of the executive board can elect to hold the deferred cash awards (partially or fully) in Julius Baer mutual funds, in particular the JB Strategy Income, Balanced or Growth funds.
The increase in Collardi's compensation is a measure of his success in 2016.
In 2016, the group increased its adjusted net profit by 1% to CHF 706 million. It also achieved record-high assets under management of CHF 336 billion, a 12% increase on 2015.
‘In 2016, we successfully focused on organic growth, enlarging our relationship manager base in strategic markets, especially Asia,’ said Collardi.
‘We took full advantage of the ongoing industry consolidation and competitive dynamics in 2016 by hiring a very substantial number of experienced relationship managers, particularly in Asia.
‘Our much enlarged relationship manager base has already made a noticeable contribution and is expected to further firmly contribute to our Group’s growth prospects and support its future profitability.’
This investment in organic growth has increased Julius Baer’s cost/income ratio to 68.9% in the short-term.
From a technological perspective, the group is on track in the implementation of its integrated core banking system in Asia, with the platform set to go live in 2017.