Swiss voters reject proposal to limit executives’ pay | Fox Business

Yet another example of widening wealth inequality.  One of the FAME V conference speakers, Stephane I believe, also noted widening wealth inequality as an economic problem.

Although the Swiss government can not cap executive pay stockholders apparently can via a binding vote (in Switzerland).  I am okay with that as long as the stockholders have a means to get together and have these binding votes on executive pay.  Employees of privately held corporations probably do not have stock therefore no means to vote.

Let me touch on employees as stockholders a little bit more.  Employees with defined benefit (pension) plans and defined contribution
(401k) plans are stockholders.  But, the mechanism to get the will of the masses (workers) into action does not appear to be working.  Income and wealth inequality are still growing around the world.

I can think of several reasons why the worker-owners (via retirement plan holdings) are not addressing the widening wealth gap:

1. Complacency

2. Executives, who ironically are supposed to act on the behalf of shareholders, may issue enough stock to themselves so they retain voting control. It is for this reason I will not invest in Facebook.

3. Outside investors such as wealthy individuals or hedge funds have more ownership than those working at a firm.

4. Worker-owners are unaware of their collective voting power.

5. Disinformation is used to trick worker-owners into voting in favor of wealth and income gap widening initiatives.

Item number 3 points to an interesting research idea: do firms with more employee ownership have more equitable pay?  I will end with that question to ponder.

http://www.foxbusiness.com/technology/2013/11/24/swiss-voters-reject-proposal-to-limit-executives-pay/

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