Switzerland to cap executive pay
It also promotes greater corporate transparency, for example by requiring that all loans to executives be declared and forcing pension funds to tell their members how they voted at shareholder meetings.
The measure targets all Swiss-based companies as long as their shares are publicly traded. Breaching the rules could lead to a fine of up to six annual salaries and up to three years in prison.
“It’s a powerful signal,” said Thomas Minder, an independent lawmaker and businessman who was one of the main forces behind the Rip-Off Initiative.
Opponents conceded that their efforts to warn voters of the possible risks to the Swiss economy had failed.
“We will respect the will of the people,” said Pascal Gentinetta, chairman of the powerful business lobby group economiesuisse.