Swiss Exceptionalism

[No Elephants]

The Swiss turn on the super-rich
By Emma Thomasson

Mon Jan 21, 2013 7:12am EST

(Reuters) - In February 2008, Thomas Minder, a Swiss businessman whose family-owned company is best known for its old-fashioned herbal toothpaste, attacked his banker, UBS Chairman Marcel Ospel, as if he were a form of stubborn plaque. At a shareholders' meeting in Basel, he stormed the podium as Ospel addressed the crowd. Ospel's bodyguards grappled with Minder and wrestled him away before he could land his symbolic blow — he was trying to hand the embattled head of Switzerland's largest bank a bound copy of Swiss company law, which codifies corporate temperance.

"Gentlemen, you are responsible for the biggest write-downs in Swiss corporate history," Minder had railed just a few minutes before, referring to UBS's loss of $50 billion during the subprime meltdown that prompted it to seek a government bailout. "Put an end to the Americanization of UBS corporate philosophy!"

The bodyguards marched Minder out of the hall amid a chorus of boos and jeers. Two months later, Ospel was gone, taking the fall for UBS's recklessness, but Minder's campaign against big bonuses had only just begun; shortly after Ospel was ousted, Minder filed the 100,000 signatures needed to launch a referendum to impose some of the tightest controls on executive compensation in the world.

Of the top 100 Swiss companies, 49 give shareholders a consulting vote on the pay of executives. A few other countries, including the United States and Germany, have introduced advisory "say on pay" votes in response to the anger over inequality and corporate excess that drove the Occupy Wall Street movement. Britain is also planning to implement rules in late 2013 that will give shareholders a binding vote on pay and "exit payments" at least every three years. Minder's initiative goes further, forcing all listed companies to have binding votes on compensation for company managers and directors, and ban golden handshakes and parachutes. It would also ban bonus payments to managers if their companies are taken over, and impose severe penalties — including possible jail sentences and fines — for breaches of these new rules.

Despite strong opposition from the business elite, Minder's initiative is given a good chance of passing when it goes to a vote on March 2. Even if his referendum fails, the country will automatically adopt a counterproposal put forward by parliament that would compel companies to hold votes on executive pay, although the results would not be binding.

http://www.reuters.com/article/2013/01/21/us-reutersmagazine-davos-swiss-rich-idUSBRE90K0F420130121

$50 billion was the largest write down in Swiss corporate history?

100,000 signatures gets them actual reform? Not just a one-sentence sarcastic reply on the administration's website?

Think I'll learn to yodel.

Statistics say the Swiss are the richest people in the world, with net financial assets of nearly $148,000 per capita. That is a third more than the average for the next two wealthiest nations—Japan and the United States. And when it comes to distribution of income, Switzerland is one of the most equal societies.

http://www.reuters.com/article/2013/01/21/us-reutersmagazine-davos-swiss-rich-idUSBRE90K0F420130121

A third more per capita than the U.S. And pretty evenly distributed to boot?

Hmmm. Sounds like Switzerland is quite exceptional. So, when we keep hearing that we are the richest nation in the world, that, too, is b.s.?

But, I am sure that all that good financial stuff the citizens of Switzerland enjoy has nothing to do with the fact that Switzerland opted out of wars circa 1850, while the U.S. ....well, you know,

[Enthusiast]

1. I don't know where the Swiss are on this but,

needless to say, it isn't anywhere close to the ridiculous level as in the U.S.

[No Elephants]

3. See, we're Number One.

In incredibly out of whack ratios.

It's funny. I looked down the list and I could literally feel my eyes open wider when I got to Mexico. And when I got the U.S., I just smiled at myself for having been surprised by Mexico and Venezuela.

[formercia]

2. Back in the 'Old Days', when someone's business went under

they lost everything. Now, it's Joe Schmoe LLC Limited Liability Corporation. There needs to be some accountability. If a CEO's Corporation fares modestly, then they're making their pay. If it does poorly, they lose their job. Only when the Corporation does exceptionally well, should they get a bonus, along with everyone else in the Corporation.
Getting a bonus for firing people should be made illegal.