Swiss vote in favour of strict controls on executive pay and compensation

Swiss citizens voted yesterday to impose some of the world’s strictest controls on executive pay, forcing public companies to give shareholders a binding vote on compensation, initial result projections showed.

Claude Longchamp of pollsters Gfs.Bern told Swiss state television that early returns in a referendum revealed that 68% backed plans for a shareholder veto on executive pay and for a ban on big rewards for new and departing managers.

The clear majority was unusual given fierce opposition and intense campaigning by business lobby group Economiesuisse, which warned that the proposals will damage the country’s competitiveness and scare away international talent.