Thomas Minder (center), who sponsored the initiative to curb executive pay. (Photo: AFP/ Fabrice Coffrini)
Swiss Overwhelmingly Vote to Curb Executive Pay
"Fat cat initiative" reins in corporate pay
On Sunday Swiss citizens voted overwhelmingly to rein in exorbitant executive pay.
With the backing of nearly 68% of voters, Agence France-Presse reports that the so-called "fat cat initiative"
would limit the mandate of board members to one year, and would ban certain kinds of compensation, including the so-called golden handshakes or golden parachutes given to executives when they leave a company.
In addition, it would ban the bonuses received for takeovers, or when a company sells off part of its business.
BBC adds that it would
give shareholders a veto on compensation and ban big payouts for new and departing managers.
"Today's vote is the result of widespread unease among the population at the exorbitant remuneration of certain company bosses," Justice Minister Simonetta Sommaruga told reporters in Bern after the vote.
The country's direct democracy system allowed for the vote to take place, Reuters points out:
While anger at multi-million dollar payouts for executives has spread around the globe since the financial crisis, Swiss direct democracy - including four national referendums a year - means public outrage can be translated into strong action.
Days before the Swiss vote, the EU parliament approved a plan to cap bonuses for financial executives and bankers.
_____________________________
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. The final deadline for our crucial Summer Campaign fundraising drive is just days away, and we’re falling short of our must-hit goal. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
On Sunday Swiss citizens voted overwhelmingly to rein in exorbitant executive pay.
With the backing of nearly 68% of voters, Agence France-Presse reports that the so-called "fat cat initiative"
would limit the mandate of board members to one year, and would ban certain kinds of compensation, including the so-called golden handshakes or golden parachutes given to executives when they leave a company.
In addition, it would ban the bonuses received for takeovers, or when a company sells off part of its business.
BBC adds that it would
give shareholders a veto on compensation and ban big payouts for new and departing managers.
"Today's vote is the result of widespread unease among the population at the exorbitant remuneration of certain company bosses," Justice Minister Simonetta Sommaruga told reporters in Bern after the vote.
The country's direct democracy system allowed for the vote to take place, Reuters points out:
While anger at multi-million dollar payouts for executives has spread around the globe since the financial crisis, Swiss direct democracy - including four national referendums a year - means public outrage can be translated into strong action.
Days before the Swiss vote, the EU parliament approved a plan to cap bonuses for financial executives and bankers.
_____________________________
On Sunday Swiss citizens voted overwhelmingly to rein in exorbitant executive pay.
With the backing of nearly 68% of voters, Agence France-Presse reports that the so-called "fat cat initiative"
would limit the mandate of board members to one year, and would ban certain kinds of compensation, including the so-called golden handshakes or golden parachutes given to executives when they leave a company.
In addition, it would ban the bonuses received for takeovers, or when a company sells off part of its business.
BBC adds that it would
give shareholders a veto on compensation and ban big payouts for new and departing managers.
"Today's vote is the result of widespread unease among the population at the exorbitant remuneration of certain company bosses," Justice Minister Simonetta Sommaruga told reporters in Bern after the vote.
The country's direct democracy system allowed for the vote to take place, Reuters points out:
While anger at multi-million dollar payouts for executives has spread around the globe since the financial crisis, Swiss direct democracy - including four national referendums a year - means public outrage can be translated into strong action.
Days before the Swiss vote, the EU parliament approved a plan to cap bonuses for financial executives and bankers.
_____________________________