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The Swiss Federal Assembly Parliament in Bern. Violation of new laws affecting compensation will be punishable by jail terms.
The Swiss Federal Assembly Parliament in Bern. Violation of new laws affecting compensation will be punishable by jail terms.
(Kevin George/iStockphoto)

BREAKINGVIEWS

Swiss may set pace by bringing hammer down on pay

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.