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 […]
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 […]