Posted on 03/05/2013 6:38:08 AM PST by ksen
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.
Business groups argued the proposals would damage Swiss competitiveness.
But analysts say ordinary Swiss are concerned about a growing economic divide in the country.
The vote came just days after the EU approved measures to cap bankers' bonuses.
(Excerpt) Read more at bbc.co.uk ...
Quite right too. Collectively, shareholders own the company. The idea that they had no right to veto their bonuses was a violation of their property rights.
Eat-the-rich populism is about to sweep the planet, it seems. Does not help that so many banks and Wall Street types keep doing incredibly stupid, short-sighted things to encourage this trend.
Which is it? “Eat the rich populism” or giving shareholders the tools to protect their property?
Eat-the-rich populism is about to sweep the planet, it seems.
Given that most of the super rich are far left, rig the system, kill off the poor types, so be it.
Quite right too. Collectively, shareholders own the company.
Exactly, corporate boards have been stealing from the real owners for too long.
It was called the “Abzocker Initiative” which means Rip-off Initiative.
http://www.abzockerinitiativeja.ch/
The departing CEO of Novartis became the poster child for voting in favor of this national referendum.
Novartis CEO pay cited as Swiss weigh limits to exec compensation
RE: Executive Pay Curbs
Who is curbing this? The shareholders or the government?
If it’s a private company, what the heck does the government have to do with it?
Yeah, gonna need some evidence for that one.
Executive pay and competitiveness are not in opposition. This is a false argument.
The trouble with ridiculously large executive compensation is that it is a rigged deal by “incestuous” boards of directors.
Most people imagine boards of directors with the old model of majority shareholders sitting around the table with the president and CEO. But the reality today is that many board members are proxies for other corporations, hirelings that sit on several boards.
Thus they have no personal loyalty to that company or its shareholders, and are more than happy to overcompensate its top executives, because that CEO or president has their own proxy on the board of the first proxies company, who will do the same for them.
So giving the common shareholders more say in executive compensation will do much to actually protect these companies, returning it to real market value.
I have no problem with this....Shareholders should have a say in executive compensation.
Yep.
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