Yesterday, Swiss lawmakers approved a measure that will give shareholders binding control over executive compensation, according to a Wall Street Journal report.
A large majority, 68 percent, voted in support of the Minder Initiative, which was named after Thomas Minder, the sponsor of the proposal.
The measure is essentially a stricter version of the Dodd-Frank law in the United States. Under Dodd-Frank, there is a "say-on-pay" provision, in which shareholders of investor-owned companies — including hospital chains like Nashville, Tenn.-based Hospital Corporation of America and Franklin, Tenn.-based Community Health Systems — have advisory votes on executive compensation and "golden parachute" packages. However, the shareholder votes are nonbinding and cannot officially change the payouts for a company's top executives.
Under the Swiss measure, shareholders of Swiss companies have final say to approve or block compensation for executives and board members.
Some have said the Swiss vote "might serve as a model for proponents of stricter corporate governance elsewhere," according to the report. The Minder Initiative could go into effect as early as 2014.
A large majority, 68 percent, voted in support of the Minder Initiative, which was named after Thomas Minder, the sponsor of the proposal.
The measure is essentially a stricter version of the Dodd-Frank law in the United States. Under Dodd-Frank, there is a "say-on-pay" provision, in which shareholders of investor-owned companies — including hospital chains like Nashville, Tenn.-based Hospital Corporation of America and Franklin, Tenn.-based Community Health Systems — have advisory votes on executive compensation and "golden parachute" packages. However, the shareholder votes are nonbinding and cannot officially change the payouts for a company's top executives.
Under the Swiss measure, shareholders of Swiss companies have final say to approve or block compensation for executives and board members.
Some have said the Swiss vote "might serve as a model for proponents of stricter corporate governance elsewhere," according to the report. The Minder Initiative could go into effect as early as 2014.
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