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<br /> abCompensation Report 2011<br /> Our compensation in 2011<br /> <br /> Contents<br /> 2 2011 compensation at a glance<br /> 4 Letter from the Human Resources and Compensation<br /> Committee of the Board of Directors<br /> 6 Compensation governance<br /> 8 Total Reward Principles<br /> 11 Overview of our compensation model<br /> 19 Deferred variable compensation plans<br /> 25 Compensation funding and expenses<br /> 30 2011 compensation for the Group Executive Board and<br /> Board of Directors<br /> 41 List of key terms in the compensation report<br /> 42 Information sources<br /> 2011 compensation at a glance<br /> – Our compensation framework seeks to ensure that our employees’ interests are<br /> aligned with those of our shareholders. Our incentives reward our employees for per-<br /> forming well and, together with the risk considerations that are integrated within the<br /> compensation process, keep them<a title="Compensation Report 2011 - en page 1" href="http://viewer.zmags.com/publication/b9b1deaf?page=1"> abCompensation Report 2011 Our compens</a> <a title="Compensation Report 2011 - en page 2" href="http://viewer.zmags.com/publication/b9b1deaf?page=2"> </a> <a title="Compensation Report 2011 - en page 3" href="http://viewer.zmags.com/publication/b9b1deaf?page=3"> Contents 2 2011 compensation at a glance 4</a> <a title="Compensation Report 2011 - en page 4" href="http://viewer.zmags.com/publication/b9b1deaf?page=4"> 2011 compensation at a glance – Our compensation</a> <a title="Compensation Report 2011 - en page 5" href="http://viewer.zmags.com/publication/b9b1deaf?page=5"> High levels of deferred bonuses for Group Executi</a> <a title="Compensation Report 2011 - en page 6" href="http://viewer.zmags.com/publication/b9b1deaf?page=6"> Advisory vote Compensation report 2011 D</a> <a title="Compensation Report 2011 - en page 7" href="http://viewer.zmags.com/publication/b9b1deaf?page=7"> level. In addition to the impact that our weaker </a> <a title="Compensation Report 2011 - en page 8" href="http://viewer.zmags.com/publication/b9b1deaf?page=8"> Advisory vote Compensation report 2011 C</a> <a title="Compensation Report 2011 - en page 9" href="http://viewer.zmags.com/publication/b9b1deaf?page=9"> levels of the organization. Towers Watson has no </a> <a title="Compensation Report 2011 - en page 10" href="http://viewer.zmags.com/publication/b9b1deaf?page=10"> Advisory vote Compensation report 2011 T</a> <a title="Compensation Report 2011 - en page 11" href="http://viewer.zmags.com/publication/b9b1deaf?page=11"> takes into account the long-term risk impact of e</a> <a title="Compensation Report 2011 - en page 12" href="http://viewer.zmags.com/publication/b9b1deaf?page=12"> Advisory vote Compensation report 2011 B</a> <a title="Compensation Report 2011 - en page 13" href="http://viewer.zmags.com/publication/b9b1deaf?page=13"> Overview of our compensation model Our compens</a> <a title="Compensation Report 2011 - en page 14" href="http://viewer.zmags.com/publication/b9b1deaf?page=14"> Advisory vote Compensation report 2011 Bo</a> <a title="Compensation Report 2011 - en page 15" href="http://viewer.zmags.com/publication/b9b1deaf?page=15"> Impact of the unauthorized trading incident The </a> <a title="Compensation Report 2011 - en page 16" href="http://viewer.zmags.com/publication/b9b1deaf?page=16"> Advisory vote Compensation report 2011 Co</a> <a title="Compensation Report 2011 - en page 17" href="http://viewer.zmags.com/publication/b9b1deaf?page=17"> Audited Sign-on payments, severance payments and</a> <a title="Compensation Report 2011 - en page 18" href="http://viewer.zmags.com/publication/b9b1deaf?page=18"> Advisory vote Compensation report 2011 Ke</a> <a title="Compensation Report 2011 - en page 19" href="http://viewer.zmags.com/publication/b9b1deaf?page=19"> proximately 1,000 senior executives, employees wh</a> <a title="Compensation Report 2011 - en page 20" href="http://viewer.zmags.com/publication/b9b1deaf?page=20"> Advisory vote Compensation report 2011 Sh</a> <a title="Compensation Report 2011 - en page 21" href="http://viewer.zmags.com/publication/b9b1deaf?page=21"> Deferred variable compensation plans Apart fro</a> <a title="Compensation Report 2011 - en page 22" href="http://viewer.zmags.com/publication/b9b1deaf?page=22"> Advisory vote Compensation report 2011 Ca</a> <a title="Compensation Report 2011 - en page 23" href="http://viewer.zmags.com/publication/b9b1deaf?page=23"> Performance Equity Plan Plan type – UBS share pl</a> <a title="Compensation Report 2011 - en page 24" href="http://viewer.zmags.com/publication/b9b1deaf?page=24"> Advisory vote Compensation report 2011 Se</a> <a title="Compensation Report 2011 - en page 25" href="http://viewer.zmags.com/publication/b9b1deaf?page=25"> Equity Ownership Plan Plan type – UBS share plan</a> <a title="Compensation Report 2011 - en page 26" href="http://viewer.zmags.com/publication/b9b1deaf?page=26"> Advisory vote Compensation report 2011 Di</a> <a title="Compensation Report 2011 - en page 27" href="http://viewer.zmags.com/publication/b9b1deaf?page=27"> Compensation funding and expenses How we deter</a> <a title="Compensation Report 2011 - en page 28" href="http://viewer.zmags.com/publication/b9b1deaf?page=28"> Advisory vote Compensation report 2011 $W</a> <a title="Compensation Report 2011 - en page 29" href="http://viewer.zmags.com/publication/b9b1deaf?page=29"> Audited Total variable compensation1 </a> <a title="Compensation Report 2011 - en page 30" href="http://viewer.zmags.com/publication/b9b1deaf?page=30"> Advisory vote Compensation report 2011 Bo</a> <a title="Compensation Report 2011 - en page 31" href="http://viewer.zmags.com/publication/b9b1deaf?page=31"> Audited Ex-post explicit and implicit adjustment</a> <a title="Compensation Report 2011 - en page 32" href="http://viewer.zmags.com/publication/b9b1deaf?page=32"> Advisory vote Compensation report 2011 2</a> <a title="Compensation Report 2011 - en page 33" href="http://viewer.zmags.com/publication/b9b1deaf?page=33"> Board of Directors compensation Chairman of the </a> <a title="Compensation Report 2011 - en page 34" href="http://viewer.zmags.com/publication/b9b1deaf?page=34"> Advisory vote Compensation report 2011 Audited </a> <a title="Compensation Report 2011 - en page 35" href="http://viewer.zmags.com/publication/b9b1deaf?page=35"> Audited Share and option ownership / entitlement</a> <a title="Compensation Report 2011 - en page 36" href="http://viewer.zmags.com/publication/b9b1deaf?page=36"> Advisory vote Compensation report 2011 Co</a> <a title="Compensation Report 2011 - en page 37" href="http://viewer.zmags.com/publication/b9b1deaf?page=37"> Audited Total payments to BoD members CHF, excep</a> <a title="Compensation Report 2011 - en page 38" href="http://viewer.zmags.com/publication/b9b1deaf?page=38"> Advisory vote Compensation report 2011 Audited </a> <a title="Compensation Report 2011 - en page 39" href="http://viewer.zmags.com/publication/b9b1deaf?page=39"> Audited Total For the number of Number </a> <a title="Compensation Report 2011 - en page 40" href="http://viewer.zmags.com/publication/b9b1deaf?page=40"> Advisory vote Compensation report 2011 Audited </a> <a title="Compensation Report 2011 - en page 41" href="http://viewer.zmags.com/publication/b9b1deaf?page=41"> Audited Total For the number of Number </a> <a title="Compensation Report 2011 - en page 42" href="http://viewer.zmags.com/publication/b9b1deaf?page=42"> Advisory vote Compensation report 2011 Audited </a> <a title="Compensation Report 2011 - en page 43" href="http://viewer.zmags.com/publication/b9b1deaf?page=43"> List of key terms in the compensation report </a> <a title="Compensation Report 2011 - en page 44" href="http://viewer.zmags.com/publication/b9b1deaf?page=44"> Information sources Reporting publications An</a> <a title="Compensation Report 2011 - en page 45" href="http://viewer.zmags.com/publication/b9b1deaf?page=45"> Corporate information The legal and commercial n</a> <a title="Compensation Report 2011 - en page 46" href="http://viewer.zmags.com/publication/b9b1deaf?page=46"> Cautionary Statement Regarding Forward-Looking St</a> <a title="Compensation Report 2011 - en page 47" href="http://viewer.zmags.com/publication/b9b1deaf?page=47"> </a> <a title="Compensation Report 2011 - en page 48" href="http://viewer.zmags.com/publication/b9b1deaf?page=48"> UBS AG P.O. Box, CH-8098 Zurich P.O. Box, CH-4002</a>