One of these things is not like the other: The EU on bankers’ bonuses and the Swiss on corporate pay
SADLY, all too many people seem to be thinking that these things are the same, or similar.
We’ve the EU trying to push through a limit on bankers’ bonuses. They can only get a bonus equal to 100% of their salary, or 200% if the shareholders agree. And then there’s the Swiss vote of yesterday about how fat cat corporate pay can be limited. The thing is, not only aren’t they roughly the same thing they’re actually opposites of each other:
Swiss vote to impose world’s strictest rules on executive pay after public outcry over fat cat bonuses
People in Switzerland have voted for strict controls on executive pay
68 per cent backed plans to veto pay-outs to bosses
Move sparked by anger over the big bonuses blamed for fuelling risky investments
It comes after the EU announced plan to cap bankers’ bonuses at a year’s pay
No, really, these two things are the opposite of each other.
The EU, in its wsidom, has decided that shareholders may not pay their employees as they wish. Politicians will decide that now thank you very much.
The Swiss have decided that shareholders can decide how much to pay their employees and politicians can go suck eggs. For that is indeed what the Swiss law is. Shareholders must, every year, vote on how their management gets paid. They can have any sodding system they like, including a £1 salary and a million times salary bonus if they wish.
Which is, I hope you’ll agree, really rather different. One new law takes power away from shareholders, the other gives it to them. No, no prizes for guessing which system takes the power away from the people either.
Posted: 19th, March 2013 | In: Money Comment | TrackBack | Permalink
