Switzerland Proposes New Law To Link Execs' Pay With Lowest Paid Workers

[maxrandb]

This is interesting.

http://www.businessinsider.com/switzerland-to-vote-on-executive-pay-law-sunday-2013-11

Switzerland will vote on Sunday on whether to limit the salaries of top executives so they don't earn more in a month than the lowest paid workers earn in a year, a move that could mean big pay cuts for business leaders earning millions.

The so-called 1:12 initiative for Fair Pay, the latest attempt to narrow a growing wage gap in one of the world's wealthiest nations, was brought about by the youth wing of the Social Democrats (JUSO), who gathered the 100,000 signatures needed to force a nationwide vote.

Despite its high standard of living, Switzerland is a generally egalitarian country, increasingly unhappy with rising wealth inequality as wages of executives balloon while those of low-skilled workers lag. "After the Second World War the growth of salaries and wealth was more or less parallel,"JUSO President David Roth told Reuters. "In the last ten years one small part of society took the big profits and the majority ... had less in their pockets."

In 2010, the 10 percent of the workforce with the lowest salaries earned just under 4,000 Swiss francs ($4,400) per month, according to the Swiss Trade Unions Association. That suggests that top earners' wages would be capped at around 576,000 francs ($632,000) a year if the referendum passes. That would imply savage cuts for some chief executives. The average compensation of CEOs at Swiss blue-chip companies was 6.7 million Swiss francs in 2012
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Could you imagine the apoplectic response here in America if someone suggested that executive pay be limited to 12 times there lowest paid workers. Hell, the CEO of McDonald's would be making about $170K a year!

[Warpy]

1. We need that here

The execs won't suffer much, we'll just go back to the system they had when they were taxed 90% on naked greed: the corporation will own the fancy vacation viilas and the limos and the yachts. As long as they're heading the corporation, they will live like potentates.

But yes, a lot of heads would be exploding and a lot of those parasites would be quitting and heading offshore to follow their ill gotten goods in Caribbean tax havens.

[maxrandb]

6. As a result of a recession, an oil emgargo and a hostage crisis

in the 70's, this country lost it's frickin' mind and elected some genteel parasite that completely turned the idea of "unity" and "country" on it's frickin' head.

Wealthy people used to avoid paying that onerous 90% income tax rate by actually pouring some of their wealth back into the company in the form of wages, technology and production upgrades, company investment and expansion. Freed from the powerful motivator of sane tax policy by Reagan, those wealthy people no longer saw a need to "re-invest" their wealth, or spread some around in the form of higher wages, they simply took, took, took, took and took.

Seriously, I am happy that the Walton's worked hard and accumulated great wealth, but you can't tell me that they could possibly spend the wealth they accumulated in a 1000 lifetimes. Maybe if the top executives at Walmart were to take....say....$3M a year in pay, vice $60M, some of that could be passed on to workers. Maybe then they wouldn't have to hold food drives for their own frickin' employees.

[Warpy]

10. Well, Kennedy had lowered that 90% rate down to 70%, a big mistake IMO

because it allowed the wealthy some extra spending money to endow think tanks and start buying up some of the cheaper Red State congressmen. That actually prepared the country for that slick corporate pitchman, Reagan, and his tax cut snake oil. Everybody I knew did the math and knew what was going to happen because of it--pennies to working people and hundreds of thousands to the ultra rich.

The part that gets me about this Wal Mart food drive is that they're not a bit embarrassed by it. It doesn't occur to them that their employees have to eat 365 days a year and that they're not being paid enough to do that. This food drive should be a source of shame for the Waltons and their hired pit bull managers. They think it's just great.

Fortunately, the message about taxpayers subsidizing these stingy and outrageously profitable corporations is starting to become a meme. It should have happened years ago but I think we'll take what we can get. Eventually, they'll force these assholes to pay the help through a large hike in the minimum wage. At that point, the moneyed will scream about inflation. Let them.

[maxrandb]

13. We've been in a race to the bottom since 1980

and I think we may finally be there.

I could not imagine my union organizing coal miner grandfather, or others from his generation, standing by while a $260 billion a year company has employees holding canned food drives for other employees.

That one singular image of bins in a Walmart break-room asking for food donations for Walmart employees is the "legacy of St, Raygun"

[malaise]

2. Direct demcoracy is a wonderful thing

We need some of that

[ColumbusLib]

3. I love this!

To even get the discussion started, comparing the highest and lowest salaries of the biggest companies, here in the USA would be a great first step.

[cemaphonic]

4. The lowest 10% of wage earners make $50,000?

My great grandpa should have stayed put.

[eqfan592]

5. Yeah, that was my thought as well!

Holy crap, can you imagine what they must think of US?!?

[maxrandb]

7. I would imagine that they have

National single payer health care and a decent social safety net too.

[cemaphonic]

9. Well, my (distant) relations think that DC-Miami is a reasonable day's drive.

But I would guess that since the Americans that your typical Swiss run into range from very affluent to incredibly rich, they probably have a pretty distorted picture economic life in the US.

[Kingofalldems]

8. Workers will get higher wages?

This is communism!!!1!

[maxrandb]

11. I just skimmed over the article

but perhaps the most amazing thing that flies by so fast that you can almost miss it is

Switzerland will be voting this SUNDAY!!

[Populist_Prole]

12. Durned Yerr-uh-peen librul soshulists!

[pampango]

15. They are out of control, aren't they?

[moondust]

14. Some doubts.

A (seemingly liberal) Swiss guy on the intertubes a few weeks ago said he doubts it will pass. I think it's a proposal by the far left there.

At least one CEO has threatened to move his company out of Switzerland if it passes. Probably no shortage of other countries willing to take them.

Would be great if it does pass!