Shareholders in Swiss companies can have a binding vote on executive compensation

Shouldn’t shareholders have the final and direct say on executive compensation? Note that in the US and UK shareholders votes on executive compensation are non binding. That is, even if shareholders here do not like the pay packages of executives, and pass a vote to cut compensation, executives are not legally required to cut their pay. Don’t we teach FIN101 students that executives work for the shareholders? How did we get to the point where executives can collect money from shareholders (think Facebook IPO) then do whatever the hell they want to? Of course the puppets of the wealthy cite the same old tired concerns: executives are top talent, this will cause companies to leave, these are the job creators, etc. I say enough is enough. We frequently hear about cost cutting and reducing wages of employees. It is about time we have the discussion of cost cutting and reducing wages with respect to executives. Executives are employees too… of shareholders. The masses own shares in their retirement accounts. Let your voices be heard. http://m.cbsnews.com/fullstory.rbml?catid=57572249&feed_id=null&videofeed=null

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