Voters in Switzerland have adopted a law by referendum that will give shareholders extensive powers to limit pay for executives, force them to exercise their rights seriously and will establish across-the-board transparency on management compensation. Golden handshakes, or special bonuses like those awarded to chief executive officers after a merger, will be banned. Non-compliance with the new law will be a criminal offence punishable by jail terms of up to three years.
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BREAKINGVIEWS
