Swiss Regulation to Curb Excessive Executive Pay Faces Shareholder Challenges
The article discusses ways to control executive and director pay to reduce conflicts of interest. It looks at how laws in the US and Switzerland aim to give shareholders more say in executive pay. The draft Swiss law wants to limit high executive pay, but having more independent directors could mean less expertise in negotiations. Shareholders may not understand complex pay details, leading to uninformed voting. Some investors may avoid criticizing high pay to keep a good relationship with executives. The article suggests not setting a salary cap for high pay or adding taxes on executive pay.