The Swiss Gini March 4, 2013 at 10:00 am
The NYT gives us very good news on compensation in that most unlikely jurisdiction, Switzerland:
Swiss citizens voted Sunday to impose some of the world’s most severe restrictions on executive compensation, ignoring a warning from the business lobby that such curbs would undermine the country’s investor-friendly image.
The vote gives shareholders of companies listed in Switzerland a binding say on the overall pay packages for executives and directors. Pension funds holding shares in a company would be obligated to take part in votes on compensation packages.
In addition, companies would no longer be allowed to give bonuses to executives joining or leaving the business, or to executives when their company was taken over.
Of course you can bet that right now there are smart people devising A/B share structures where the votes go to the (tightly held) As and the divys to the Bs to get around this, but still, it is a strong and helpful signal.