Swiss to cap abusive payments

On 3rd March, the Swiss are going to vote in a referendum on new stronger measures against the abusive payments given to top CEOs, including forms of golden parachutes. The recent departure of NOVARTIS’ CEO Daniel Vasella, whose compensation has yet to be disclosed, provides support for the bill's sponsor, the Schaffhausen entrepreneur, Thomas Minder.

The measure is supported by the Socialist Party, the Greens and some of the right wing parties, while unions appear to be divided. Some unions would prefer to ensure employees receive a minimum wage and to introduce measures to prevent the income gap from increasing, so the bill might only receive partial support from the unions.

Even if according to current polls the initiative is likely to be adopted, the campaign against it is still going on and appears to be rich in resources. Opponents of the bill argue that it is too strict and fear that listed companies would leave Switzerland, resulting in job losses.

If the bill is adopted changes to the Constitution would be necessary but would strengthen the remit of the law.

Source (in french): Romandie.ch

photo credit: hublera via photopin cc