Switzerland bans golden handshakes, golden parachutes
Switzerland bans golden handshakes, golden parachutes
Swiss voters on Sunday approved what has been dubbed the toughest executive pay rules in the world.
Sixty-eight percent of voters were in favor of forcing Swiss companies to give shareholders sweeping powers in deciding on executive pay. The proposal also bans golden handshakes, golden parachutes and signing bonuses. If managers don't abide by these rules, they may face up to three years in prison.
The vote reflects growing anger over excessive bonuses and executive pay, given that Switzerland's CEOs and chairmen are among the highest paid in the world. Many argued that the recent public outcry over Novartis' Chairman's golden handshake worth 72 million francs ($76 million) has fueled the frustration further, leading to one of the highest approvals in a referendum vote in Swiss history.
The so-called "rip-off" initiative has polarized Switzerland, which has long been a bastion of high pay and lucrative bonuses. Thomas Minder, a politician and businessman from the north of Switzerland, is the mastermind behind the initiative and has lobbied for a referendum for more than four years.
http://www.alaskadispatch.com/article/20130305/switzerland-bans-golden-handshakes-golden-parachutes
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