The Official Blog for

The Executive School of the University of St.Gallen

Insights and observations on management and executive education from our directors and faculty.


Category: Corporate Governance

Prof. Winfried Ruigrok

Swiss voters against curbing executive pay excesses via state-imposed caps

This year, Switzerland has already voted twice on pay-related referenda (1:12 Initiative, Minder Initiative). Over the next years, two more will follow. A key background is that Swiss executive pay levels are higher than in most other European countries. What explains this higher pay in Switzerland?

First, executive pay is directly related to firm size. Firm size […]

Prof. Winfried Ruigrok

Swiss voters accept curbs on executive pay.

The result may be higher, not lower compensation.

This referendum outcome represents a triumph of the shareholder and of civil society- in the short run. In the future, shareholders will need to vote on listed Swiss firms’ executive pay packages. Nobody knows yet what this will mean.

Certainly, the past practice was not satisfactory. Boards of directors in Switzerland and […]