Swiss voters change constitution to curb excesses of the ‘fat cats’

During the financial and economic crisis in Europe, European chairmen and top-level executives of listed companies were increasingly set up with what were perceived as astronomic compensation packages and spectacular golden parachutes or handshakes, paid even when their companies operated at a loss, laid off employees and offered shareholders nothing but falling share prices and no dividends.

In Switzerland, Mr Minder, a small-to- medium enterprise (SME) entrepreneur manufacturing mouthwash products, was upset seven years ago when his company lost 500,000 Swiss francs (US$540,000) in the Swissair bankruptcy, while the last Swissair CEO had feathered his own nest by a 12.5 million franc prepayment of his five-year salary.

Mr Minder successfully launched a constitutional “fat cat” initiative designed to improve shareholders’ say on pay of listed Swiss companies. On 3 March 2013 Swiss voters adopted his initiative by a clear margin of 67% affirmative votes. Consequently, the Swiss constitution was amended accordingly.