M Reporting date: 31 December 2017 Reporting date: 31 December 2017 1 Content Group structure and ownership 3 Board of Directors 3 Executive Board 6 Basis and components of compensation for the members of the Board of Directors and the Executive Board 7 Components of the remuneration 7 Risk management framework and process 8 Auditing body 10 Cover image: Detail of the inlaid parquet floor in the South passage adjacent to the Ballroom on the second floor piano nobile of the Liechtenstein City Palace, executed by Michael Thonet © LIECHTENSTEIN. The Princely Collections, Vaduz–Vienna 2 Corporate Governance The binding principles of corporate governance are set out in the company’s articles of incorporation, the organizational and governance regulations, as well as in the regulations of the Board of Directors Committees and are defined in detail in corresponding directives. As a bank domiciled in Switzerland, we are subject to supervision by FINMA and are therefore required to implement all applicable regulations. The following information on corporate governance is in accordance with FINMA Circular 2016/1 (Annex 4). Group structure and ownership LGT Bank (Switzerland) Ltd. is ultimately owned by LGT Group Holding Ltd. LGT Group Holding Ltd. is 100 percent controlled by LGT Group Foundation. LGT Group Foundation is 100 percent controlled by the Prince of Liechtenstein Foundation (POLF), the beneficiary of which is H.S.H. Reigning Prince Hans-Adam II von und zu Liechtenstein. The participations of LGT Bank (Switzerland) Ltd. are not relevant to the overall assessment of the company, and no consolidated financial statements are therefore prepared. Participations are listed on page 27 of the annual report. Board of Directors The composition of the Board of Directors as at 31 December 2020 can be found in the table below. No member of the Board of Directors has an executive function at the bank. Three of six board members (H.S.H. Prince Hubertus von und zu Liechtenstein, Hans Roth and Gabrielle Nater-Bass) fulfill the requirements as regards independence in accordance with FINMA Circular 2017/1. The other three members represent the shareholder. Board of Directors Board member Since Committee membership Olivier de Perregaux, Chairman 2003 Compensation Committee, Nomination H.S.H. Prince Hubertus Alois von und zu Liechtenstein 2017 Audit and Risk Committee Michael Bürge, Vice Chairman 20201 Audit and Risk Committee Thomas Piske 2006 Audit and Risk Committee, Compensation Committee, Nomination Committee Gabrielle Nater-Bass 2017 Audit and Risk Committee Hans Roth 2013 Audit and Risk Committee 1 Since 2 December 2020 Olivier de Perregaux (1965) has been CEO LGT Private Banking since 2020. After completing a Master of Economics at the University of St.Gallen, he worked as a consultant for McKinsey & Company in Zurich and New York between 1988 and 1996. From 1997 to 1999, he was Senior Transaction Manager and Head of Strategic Marketing for Center Solutions at Zurich Financial Services in Zurich. Olivier de Perregaux is a Swiss national. H.S.H. Prince Hubertus Alois von und zu Liechtenstein (1971) HSH Prince Hubertus Alois von und zu Liechtenstein studied law and business administration at the University of Zurich. He holds a master’s degree in e-business-development from the Universitat Politècnica de Catalunya, Barcelona. Prince Hubertus has long-standing experience in the educational industry. He co-founded and served as CEO of Triagonal, a company specializing in e- learning. He worked for a number of years at Laureate International Universities, as Head of Marketing and Sales UK/Ireland, and at Sommet-Education, as Regional Director for Sales and Marketing DACH, Netherlands and Scandinavia. Prince Hubertus is a member of the Board of Directors of LGT Bank Ltd. in Liechtenstein and LGT Bank (Switzerland) Ltd., and a member of the Foundation Board of the Liechtenstein Academy. Michael Bürge (1966) has been CFO of LGT Private Banking since 2021. He holds a bachelor’s degree in business administration, was awarded a postgraduate qualification in financial planning and consulting and is a Certified Financial Planner. He began his career in the Swiss financial services sector in 1982 and joined LGT in 1991 as head of the Projects Department at LGT Bank Ltd. (formerly Bank in Liechtenstein Ltd.). He has remained with LGT since then and has held numerous positions, joining the Executive Board of LGT Financial Services Ltd. in 2001. From 2005 until the end of 2020, he served as Head of Group Controlling & Accounting. Michael Bürge is a Swiss national. Thomas Piske (1958) was CEO Private Banking LGT Group from 2009 until 2020. After completing his studies in economics at the University of Innsbruck, he joined LGT Bank Ltd., in Vaduz, Liechtenstein, in 1986. In 1998, he became a member of the general management and in 2001 was appointed president of the general management of LGT Bank in Liechtenstein as well as CEO Private Banking Europe. Thomas Piske is an Austrian national. He was Chairman of the Liechtenstein Bankers Association between 2004 and 2006. 3 Gabrielle Nater-Bass (1968) has been a partner at the law firm Homburger in Zurich since 2006 and is a member of the firm’s Board of Directors. She studied law at the University of Zurich and was admitted to the bar in 1996. In 1997, she joined Homburger as an associate. Between 1998 and 2000, she completed her LL.M. at the University of Virginia School of Law (USA) and worked as a foreign associate at the international law firm WilmerHale in Washington D.C. and London. In 2000, she returned to Homburger in Switzerland. Gabrielle Nater-Bass is a Swiss national. Hans Roth (1953) was CEO of LGT Bank (Switzerland) Ltd. from 2004 until 2013. He studied economics at the University of Zurich. From 1978 until 1990, he worked at Schweizerische Kreditanstalt in Zurich. Following this, he joined Schweizerischer Bankverein in Basel, where he was Head of Institutional Services, and from 1995 until 1998, was Head of Corporate Finance Services for Swiss companies. In 1998 Hans Roth joined Swiss Trust Company, where he was CEO of STG Asset Management Ltd. until it was sold to LGT Group in 2003. Hans Roth is a Swiss national. Other activities and functions The non-independent members of the Board of Directors hold further mandates within LGT Group. Outside LGT Group, Olivier de Perregaux has been a member of the Board of Directors of VZ Holding Ltd. since 2014. Hans Roth is on the Board of Trustees of the following foundations: GEMINI Collective Foundation, Pensimo investment foundation, Fondation Schlumberger pour l’Education et la Recherche and Fondation Schlumberger pour la Musique et Culture and he is president of the Board of Directors of LIMA Immobilien AG. H.S.H. Prince Hubertus von und zu Liechtenstein is on the Board of Directors of LGT Bank Ltd., Vaduz, and Chairman of Triagonal AG in Liechtenstein. Gabrielle Nater-Bass is on the Board of Directors of LGT Bank Ltd., Vaduz, and of Swiss Prime Site AG, Olten. She is also a member of Swiss Prime Site AG’s Nomination and Compensation Committee. Further-more, Ms. Nater-Bass is President of the Arbitration Court of the Swiss Chambers’ Arbitration Institution and Board Member of the Swiss Arbitration Association. She is listed on the panel of arbitrators of the International Chamber of Commerce (ICC) in Paris, the Hong Kong International Arbitration Centre (HKIAC) and the Singapore International Arbitration Centre (SIAC). Internal organization The Board of Directors consists of a minimum of three members. It is responsible for the overall direction of the bank as well as the supervision and control over the operational management of the business. It is the ultimate decision-making authority and determines the strategy and organization of the bank. The Board of Directors has delegated the management of the day-to-day business to the Executive Board. The Board of Directors constitutes itself. The presence of a majority of members is necessary for resolutions to be passed. Resolutions are passed by a majority of votes; in the case of a tied vote, the Chairman has the casting vote. In urgent cases, resolutions can be precipitated by means of circular letter. There is no division of responsibilities within the Board of Directors; all resolutions are passed by the full Board of Directors. The Board of Directors currently consists of six non-executive members. It forms the following standing committees. The committees organize themselves and each consist of a minimum of two members of the Board of Directors. Audit and Risk Committee The Audit and Risk Committee consists of five members of the Board of Directors. It is chaired by Michael Bürge. The other members are H.S.H. Prince Hubertus von und zu Liechtenstein, Thomas Piske, Hans Roth and Gabrielle Nater-Bass. Compensation Committee The members of the Compensation Committee are Olivier de Perregaux and Thomas Piske. Nomination Committee The members of the Nomination Committee are Olivier de Perregaux and Thomas Piske. The Executive Board is composed of the CEO, the heads of the business areas and the COO. The members of the Executive Board report directly to the CEO. The members of the Executive Board deputize for each other. 4 Assignment of competencies The Board of Directors is responsible for the company’s overall direction, supervision and control. In addition to the duties and powers prescribed in the articles of incorporation and by law, the Board of Directors in particular has the following non-transferrable duties: . Approval of the mission statement, strategy and the organizational structure up to the level of the Executive Board’s direct reports; approval of strategic partnerships with other banks/institutions . Approval of medium-term planning, the annual budget including staff ceiling and the financial statement .