God Bless the Swiss People*

The Swiss voters just overwhelmingly approved a referendum for executive compensation reform, including binding shareholder votes on executive pay, bans on golden parachutes, and merger bonuses:

Swiss voters have approved measures to curb executives' pay and outlawed golden parachutes that can result on directors pocketing multimillion-pound payoffs.

Exit polls suggested almost 68% of those who turned out for Sunday's referendum, and all of Switzerland's 26 cantons, were in favour of the measures, which also include giving shareholders a binding vote on executive pay, banning golden hellos and banning bonuses that encourage buying or selling firms. Boards of directors that fail to comply face jail terms.

………

Minder says the massive sums demonstrate that company boards have lost control of pay and prefer to fork out "astronomical" salaries rather than pay dividends to shareholders.

Minder told the Swiss daily Le Temps that the only solution was to give shareholders the power to set pay. If his law is passed all compensation packages to board members and company heads would need their approval.

According to the proposed law, executives of listed companies who failed to abide by the new rules could face up to three years in jail and fines amounting to up to six years' salary.

Needless to say, the elites are freaking out over this:

The Swiss government and the upper house of parliament opposed the initiative, warning it could provoke an exodus of big companies.

Minder rejected this, saying that the level of disquiet over executive pay and bonuses in other countries meant his initiative could become Switzerland's "best export product".

"It's a great advantage for investors," he said, suggesting that instead of chasing companies away, such a law would entice investors to set up firms in Switzerland.

I'm inclined to agree that this will make businesses more competitive, not less competitive.

The amount of capital that has been wasted on paying people about whom little is exceptional but their own sense of self-worth is staggering.

If the Swiss vote triggers a race to the bottom in executive compensation, the rest of us will benefit.

^*I cannot f%$#ing believe that I f%$#ing said that.