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Swiss reject plan to cap managers' pay [November 25, 2013] BERLIN (AP) — Swiss voters soundly rejected on Sunday a proposal to limit the pay of companies' highest-paid managers to 12 times that of their lowest-paid workers, a plan that business leaders had warned could weaken the prosperous nation's economy. |
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Voters shot down the plan in a referendum by a
margin of 65.3 percent to 34.7 percent, and all 26 of the
country's cantons (states) voted against. Initiatives need a
majority of both voters and cantons to pass. Sunday's referendum came after voters in March voiced anger at
perceived corporate greed by deciding to boost shareholders' say
on executive pay and ban one-off bonuses known as "golden
hellos" and "goodbyes." However, the new "1:12 initiative" from Switzerland's Young
Socialists calling for a fixed legal cap on pay appeared to be a
step too far for centrist and conservative voters. Switzerland is home to global business players such as
pharmaceutical companies Novartis and Roche; insurance groups
Zurich and Swiss Re; and banks UBS and Credit Suisse. Backers of the "1:12 initiative" argued that imposing a legal
limit on salaries would ensure greater fairness while still
giving top bosses the chance to earn more money than, for
example, government ministers. But Swiss business leaders argued it would weaken the nation's
competitiveness, make it harder to attract top talent and likely
prompt some companies to move executives abroad. Opponents included Sepp Blatter, the Swiss president of world
soccer's governing body FIFA, who argued that it would have the
side-effect of seriously damaging Swiss soccer. "Of course we're disappointed," Young Socialist leader David
Roth told Swiss television. "Our opponents succeeded in making people afraid," he said,
though he insisted that there was "no future" for an "economic
system based on salaries in the millions, on financial
speculation." The head of Switzerland's employers' association said he was
greatly relieved. "This is an important decision for Switzerland as a business location," Valentin Vogt said. "The people have decided clearly that setting salaries in this country is not a matter for the state." [Associated Press; GEIR MOULSON] Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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