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Swiss Referendum Backs Executive Pay Curbs
gollum123 writes in with news that Switzerland may soon have the world's strictest corporate rules. "Swiss voters have overwhelmingly backed proposals to impose some of the world's strictest controls on executive pay, final referendum results show. Nearly 68% of the voters supported plans to give shareholders a veto on compensation and ban big payouts for new and departing managers. The new measures will give Switzerland some of the world's strictest corporate rules. Shareholders will have a veto over salaries, golden handshakes will be forbidden, and managers of companies who flout the rules could face prison.The 'fat cat initiative', as it has been called, will be written into the Swiss constitution and apply to all Swiss companies listed on Switzerland's stock exchange. Support for the plans — brain child of Swiss businessman turned politician Thomas Minder — has been fueled by a series of perceived disasters for major Swiss companies, coupled with salaries and bonuses staying high."
"this" has already passed. according to swiss constitution, a text that was validated in such a referendum MUST be written into law. guess the swiss will be able to get rid of those parasites...
There is already no shortage of foreign CEOs in Swiss companies. The proportion of foreigners working in the country in high-paid jobs is really high.
As for perceived disasters, I don't know where they got that idea as the Swiss economy is thriving compared to the rest of the western world right now. The last catastrophe was the bankruptcy of Swissair and that was back in 2002. Plus the company was immediately reborn as a new airline (Swiss) with very little disruption of operations. Banks have had a hard time but I don't think that this is registered in the mind of people as being a problem coming from board members. If anything ticked the balance towards a yes to this initiative, that was Daniel Vasela, ex-CEO of Novartis, receiving a 72M CHF (about 76M USD) severance package as he left the company a mere two weeks before the vote (he later declined it).
The difference between you and me is that you're anonymous and I am not.
signature is pants
What a bunch of bullshit. Perhaps if you knew anything about the wealth distribution in america you'd know otherwise.
The top bar is the ACTUAL distribution of wealth in america. Notice the next 40 getting a tiny bit and the bottom 40% getting next to nothing, so small is what they are paid they don't even register. This is real time slavery via the wage system.
http://www2.ucsc.edu/whorulesamerica/power/images/wealth/Actual_estimated_ideal_wealth_distribution.gif
http://www2.ucsc.edu/whorulesamerica/power/wealth.html
So what you are saying is that you are an un-motivated slacker?
Try searching for that little tag.
signature is pants
I have no problems with founding entrepreneurs like Jobs and Zuckerberg making billions (Gates, a bit different because a lot of his wealth was directly tied to the way he flouted the antitrust laws in the '90s). And I'm not especially jealous of rich old men hanging around yacht clubs dousing themselves with single malt. But 8-digit compensation for CEOs of Fortune 500 companies is now routine, and I think this affects the way those companies are run. Exhibit A: the housing bubble and financial meltdown 2002-2008. Notice that it occurred during a Republican administration, after the POTUS cut tax rates for the wealthy and weakened oversight of antitrust and capital markets. Exhibit B: the obsession on quarterly earnings by companies and their boards, that causes companies to sacrifice innovation and responsibility to their workforce and the environment in the name of the shareholders.
Parent deserves more than +5. I've worked with the highest levels of management and there is so much magical thinking at these levels, it puts any witch coven to shame.
Just one example: In many sectors, there is the unquestioned belief that only X amounts of companies can survive in the market. So the CEOs main job is to make sure his company is in the top X. If he's at X+1 or X+2, he risks being canned. No matter if the company is successful, profitable, whatever - doesn't matter because higher ups believe in that mantra.
Assorted stuff I do sometimes: Lemuria.org