This content is not available in your region

Swiss reject plans to rein in executive pay

Swiss reject plans to rein in executive pay
Text size Aa Aa

Swiss voters have rejected moves to curb executive pay.

Amid anger over income inequality, they were asked if bosses’ salaries should be capped at 12 times that of their lowest-paid employee.

But the government and industry leaders warned the measure could harm the country’s economy and deter foreign investment.

And voters look to have shared those fears, saying a firm ‘no’ to the proposal, put forward by Switzerland’s Young Socialists. They had gathered the 100,000 signatures needed to force a nationwide vote under the Swiss system of direct democracy.

Despite its high standard of living, Switzerland has become increasingly uncomfortable as executives’ wages soar while those of low-skilled workers lag.

In March, a referendum overwhelmingly backed moves to rein in golden handshakes but this latest proposition looks to have been a step too far.