Swiss vote to curb salaries

Swiss voters have given the government a clear message to curb excessive director pay following the outcome of a referendum in which they approved proposals by a 67.9% margin, reports accountancy services Harris & Co.

The proposals – expected to be among the toughest rules on executive pay in the world – could see reforms include a binding annual shareholder vote on executive compensation for listed firms and a ban on golden handshake and parachutes – bonus payments for new or departing executives.

The proposals also pose punishment of jail for executives who violate the terms.

Swiss voters have felt particularly sore about executive pay after UBS had to be bailed out with taxpayer money in 2008. Foreign executives have also been paid as much as £9.2m in annual pay while blue collar workers have complained of immigration impacting on their wages.