Swiss voters have overwhelmingly approved strict controls on executive pay, raising hopes that this will pave the way for new anti-greed legislation across Europe.
In a referendum on 3 March nearly 68 percent of Swiss voters came out in favour of plans to give company shareholders a veto on compensation and ban big payouts for new and departing managers.
The "fat cat initiative," as it has been dubbed, will be written into the Swiss constitution and applies to all Swiss companies listed on the stock exchange.
Just days after the European Union agreed on measures to cap bankers' bonuses, the Swiss referendum could serve as a signal to other European countries. In Germany, the Social Democratic Party intends to call for a similar law on limiting executive salaries.
"People no longer accept this warped bonus system, not only in banks but also in the business sector," said a party leader.
Support for the Swiss move was fuelled by a series of financial disasters, with Swiss banking giant UBS resorting to state aid during the financial crisis after posting billions in losses.
Meanwhile, companies such as pharmaceutical giant Novartis have announced thousands of layoffs. But executive salaries and bonuses continue to soar in Switzerland, which has sparked a groundswell of public anger.
According to the draft law, shareholders will be able to veto salaries, while sign-on bonuses and golden handshakes will be forbidden. Company managers who flout the rules could face prison.
For more on this see http://www.spiegel.de/international/europe/german-editorialists-welcome-....
Media comment at http://www.swissinfo.ch/eng/business/Minder_vote_sends_clear_signal_to_e...