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As expected, Swiss voters have approved an "anti-fat cat" initiative that allows investors to...

As expected, Swiss voters have approved an "anti-fat cat" initiative that allows investors to hold binding votes every year on executive pay at listed companies, and enable them to block large payouts at the start and end of a manager's employment. Executives who break the new law could face hefty fines and up to three years in jail.
Comments (5)
  • Daveintosa
    , contributor
    Comments (142) | Send Message
     
    Economist The global markets can learn from this. GO BREWERS!!!
    4 Mar 2013, 03:45 AM Reply Like
  • Onex
    , contributor
    Comments (2) | Send Message
     
    I am anything but liberal. Yet, I support restrain in top executive compensation. It is outrageous to see executive failure rewarded with enormous raises supported by puppet boards of directors nominated by the executives! It's even worse to watch outrageous golden parachutes given to top executive after they wrecked their companies and are being forced out, sometimes by the acquirers who took over for a song. But I am for self-patrolling, not government regulation. Therefore, in the US what we need is more involved, better informed, pro-active investors (especially large institutional investors who largely determine shareholders voting outcomes) paying attention to what their companies' boards are doing,
    4 Mar 2013, 08:40 AM Reply Like
  • User 9153621
    , contributor
    Comments (4) | Send Message
     
    The bloated executive pay and severance compensation packages represent an interesting perspective on the short and long term health of a company - negative correlation.

     

    "Self patrolling" pits too many vested interests against each other without addressing the inherent problem - confusing "bloat" for an effective pay and compensation package. A base package tied to a "pay for play" (both positive and negative company growth) compensation system appears to be a reasonable approach to guard shareholder investment.
    4 Mar 2013, 11:22 AM Reply Like
  • minwyhe
    , contributor
    Comments (103) | Send Message
     
    Given the conservatives in congress block all legislation to provide limits on the business community this has as much chance of happening here as a snow ball in a fire has. This type of legislation is sorely needed here in the US. Board of Directors and independent auditors are nothing but rubber stamps for management and use the old dredge that if they don't pay they will lose their top executives even when a company is losing money.
    4 Mar 2013, 12:48 PM Reply Like
  • curious-george
    , contributor
    Comments (134) | Send Message
     
    with few exceptions, government regulators (laws) in reality will operate the same as the independent auditor [NOT] = ultimately ineffective; institutional investors are in-bed with company executives and the boards = ultimately ineffective; board of directors are executives first; nature of the beast -- being one ocean, executives will not sink your boat fearing their boat will surely be next
    4 Mar 2013, 02:51 PM Reply Like
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