Swiss Voters Approve Limits on ‘Fat Cat’ Executive Pay

[Political Junky]

Swiss Voters Approve Limits on ?Fat Cat? Executive Pay - Bloomberg
Swiss voters approved some of the world’s toughest limits on executives’ pay in a referendum, a move critics say could make Switzerland less attractive to multinational corporations.
The initiative against “fat cats,” proposed by Thomas Minder, head of a herbal toothpaste company, was backed by 67.9 percent of the voters today, the government said on its website today. The turnout was 46 percent. Polls, including one by gfs.bern, had signaled that outcome as probable.


The proposal gives shareholders an annual ballot on managers’ pay. It eliminates sign-on bonuses, as well as severance packages and extra incentives for completing merger transactions. The initiative also includes rules punishing executives who violate the terms with as long as three years in jail.
“I’m glad the long battle is over,” Minder, who started the campaign in 2006, told Swiss television. “It’s a powerful sign, this proportion above 60 percent.”
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[jwoodie]

We need the same thing for PUBLICLY TRADED companies, along with stricter rules regarding interlocking directorships (you scratch my back, I'll scratch yours).

 

[auditor0007]

Swiss Voters Approve Limits on ?Fat Cat? Executive Pay - Bloomberg
Swiss voters approved some of the world’s toughest limits on executives’ pay in a referendum, a move critics say could make Switzerland less attractive to multinational corporations.
The initiative against “fat cats,” proposed by Thomas Minder, head of a herbal toothpaste company, was backed by 67.9 percent of the voters today, the government said on its website today. The turnout was 46 percent. Polls, including one by gfs.bern, had signaled that outcome as probable.


The proposal gives shareholders an annual ballot on managers’ pay. It eliminates sign-on bonuses, as well as severance packages and extra incentives for completing merger transactions. The initiative also includes rules punishing executives who violate the terms with as long as three years in jail.
“I’m glad the long battle is over,” Minder, who started the campaign in 2006, told Swiss television. “It’s a powerful sign, this proportion above 60 percent.”
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Switzerland is far from being a Socialist Nirvana, so this says a lot about people's thoughts on excessive pay.

 

[bucs90]

I have mixed feelings on this law. Making a salary cap on exec pay is interesting. But, what about employee pay? For example, here we have pro sports and the entertainment industry. Actors, athletes, musicians, often net more take home pay than the owner of the company.

The only profession in the US in know FOR SURE that should have a salary cap is fucking lawyers. Lawyers should have a cap, say, 300K a year max. Want to end bullshit lawsuits? Put a salary cap on trial lawyers. They say they only do it to 'seek justice'. So, if the money isn't an issue to them, they'll still work just as hard, right?

 

[tyroneweaver]

if joe flacco isn't respected...he probably walks.
if ceo's aren't respected... they probably walk as well.
ceo's are paid big bucks to make big money.

question is whether you want a ceo managing your 401k or obama. I'll take the ceo

 

[ba1614]

Why not use your own god given right to think for yourself and not invest in a company if you don't like their pay structure?

 

[jwoodie]

Why not use your own god given right to think for yourself and not invest in a company if you don't like their pay structure?

I have no problem with executive executive compensation in PRIVATELY OWNED companies; after all, the owners are the ones footing the bill. However, PUBLIC TRADED companies are a completely different breed; ownership is so diffused among thousands of owners (shareholders) that there is no direct accountability to them.

The SEC was created to prevent the sort of stock market manipulations that were prevalent in the late 1800's and early 1900's. However, modern "management" practices have effectively circumvented SEC rules through interlocking directorships and excessive executive compensation plans which have little bearing on actual performance, instead replacing it with the vagaries of stock market prices.