Swiss curb on executive pay

Switzerland voted to impose some of the world's toughest restrictions on executive pay, giving shareholders new controls over how senior executives and directors are paid.

The vote gives shareholders of companies listed in Switzerland a binding say on the pay packages for executives and directors, meaning shareholder decisions on those packages must be followed.

Violations could lead to fines equal to six years of salary and a prison sentence of up to three years, according to the new rules described in the article.

Yes. The restrictions and the shareholders’ binding say apply to pay packages for both executives and company directors listed in Switzerland.

The business lobby warned that the curbs would undermine Switzerland’s investor-friendly image, but that warning was ignored in the vote.

Everyday investors in Swiss-listed companies will have a binding vote on executive and director pay, giving them more direct influence over compensation decisions.

Yes. The article describes the measures as some of the world's toughest restrictions on executive pay, highlighting the strong penalties and binding shareholder controls.

The business lobby warned the curbs could undermine Switzerland’s investor-friendly image, suggesting the rules may have reputational implications for how investors view Swiss markets.