A referendum is set for November 24 on a law called the “1:12 Initiative” that would impose a flexible cap on top employee compensation at Swiss companies. Article, ‘Switzerland Weighs Radical Approach To Runaway Executive Compensation’: If approved, the highest-paid employee of any given Swiss firm could not earn more in a month than its lowest-paid employee makes in a year. By using a ratio rather than a dollar figure cap, the 1:12 Initiative would both shrink the salaries of top executives and raise the pay of underlings. “You shouldn’t just say a maximum salary, because what we really want is a relationship between the lowest and the highest,” said David Roth, one of the plan’s architects, in an interview with Business Insider. In March, Swiss voters overwhelmingly approved a package of CEO pay reforms, including an outright ban on so-called “golden parachute” payouts for fired executives. In the US, the Securities and Exchange Commission recently finalized rules for how companies will report the ratio between their CEO’s pay and the average compensation of the rest of their workforce, as required by the 2010 Wall Street reform package. thinkprogress.org/economy/2013/11/08/2919341/switzerland-executive-compensation-limits/
Posted on: Sun, 17 Nov 2013 01:35:15 +0000
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