Swiss company chief executive officers, including Roche Holding AG’s Severin Schwan and Nestle SA’s Paul Bulcke, earn some of the world’s highest salaries. That may soon change.Naturally they oppose this. What they also fear is that this will pass, Switzerland will continue to prosper, and this idea will spread.
With more than 100,000 Swiss citizens having signed a petition to limit “fat-cat” pay, voters will decide at a March 3 referendum whether top executives should have their compensation set by shareholders. While a poll shows a majority may vote yes, the industry’s lobby group warns that it will drive out tax-paying companies and is campaigning for a softer counter proposal.
Common shareholders have been ignored by boards for too many decades. Too many CEOs get too many unfair deals and get rewarded too well for failure.
Let's see what happens with this initiative.