Switzerland To Vote On Intra-firm Pay Limit. Highest pay will be no more than 12x the lowest
- Thread starter The Real
- Start date
why start playing a game that's mathematically unsustainable? you can't play the game forever my guy...
no hate though, have your fun while it lasts.
there's no shortage of resources.
not to mix words we just need a redistribution of wealth... a little less on top and a little more in the middle and on the bottom
I used the word "intra-firm" in the general sense, to indicate that the pay limits only exist within firms, not between them. So different CEOs can still get paid different amounts, and the salaries in two companies can still vary widely.
They would just be paid in other ways. Benefits, company cars, company, house, company house keeper, company day care for CEO, whatever. Or just a briefcase of cash. The market cannot be controlled in the end. Governments(liberals at least) tend to have a hubris that prevents them from seeing this.
They would just be paid in other ways. Benefits, company cars, company, house, company house keeper, company day care for CEO, whatever. Or just a briefcase of cash. The market cannot be controlled in the end. Governments(liberals at least) tend to have a hubris that prevents them from seeing this.
It can't be controlled but it can be deterred and made much harder to abuse
Broke Wave
The GOAT
I'm actually against this 
I'm actually against this
Please elaborate. These kinds of discussions are the ones we could use around here.
Broke Wave
The GOAT
I just don't think that
1. This will have any tangible effect on the pay of the workers at the bottom of the corporate pyramid because CEO's and executives are usually just paid in stock options which are subject to capital gains tax instead of income tax, and therefore counted as investments by the courts. A CEO can be making 10k a year salary officially, but be getting hundreds of millions in stock from foreign subsidiaries and shareholders, and Switzerland is not going to stop the free exchange of investment vehicles.
and
2. This will address any sort of income disparity issues because of the aforementioned and additionally, what difference does it make that so and so made 50 million in a year? I think the difference between 15 and 50 million take home pay per year is really marginal in terms of lifestyle so the CEO is not going to be hurt by anything like this, and furthermore there are too many work around's to this law. The minimum income idea at least puts money in the pockets of people literally, and not through some kind of hypothetical maneuvering.
Private business people should be able to do whatever they want so far as it doesn't constitute an unfair advantage, abuse or hurt other people or the environment, and violate the civil rights of the people. Those are the only parameters I can consider a regulation being valid under, this is superfluous because it is based on ideology, even though I am a proponent of this ideology, and not immediate facts.
Broke Wave
The GOAT
Ok but you don't believe that. You think private businesses should do whatever they want, full stop. You think that they should "self-regulate" which essentially means they should have no rules. This is probably the biggest fallacy in all of economics, that anything can self regulate, and that a "market" even exists in and of itself.
Here's the actual story, take what you will from this:
Swiss Voters Reject Measure Curbing Executive Pay
by EYDER PERALTA
November 24, 2013 4:07 PM
Members of the Swiss trade union Unia, supporting a referendum to limit the pay of executives to 12 times that of a company's lowest-paid employee, demonstrate in Zurich in August.
Arnd Wiegmann/Reuters/Landov
Swiss voters rejected a measure on Sunday that would have capped executive pay to no more than 12 times that of the company's lowest paid worker.
As NPR's Eleanor Beardsley reported, the ballot initiative was driven by the youth wing of the Social Democratic Party, which said that CEO pay has been increasing at an alarming rate. Twenty-five years ago, David Roth, head of the party's youth wing, told Eleanor, Swiss CEOs made six times more than the average worker. Today they earn 40 times as much.
The Swiss, however, voted against the measure in large numbers — 65.3 percent of them rejected the measure.
The AFP reports that in the lead-up to the referendum, the business lobby launched a massive campaign against the measure, warning that the so-called 1:12 law would lower tax revenue and make Switzerland less competitive in the business world.
The AFP adds:
"Their message got across: all of Switzerland's 26 cantons and a full 65.3 percent of all voters rejected the initiative, according to final results released by public broadcaster RTS.
"Swiss Economic Affairs Minister Johann Schneider-Ammann hailed the result, saying it would allow the Swiss economy to remain competitive.
"But he urged big bosses to take note of the public outrage over some of their salaries, pointing out to reporters that 'I do not appreciate the excessive salaries received by a handful of managers.'"
The New York Times reports that supporters of the measure accepted defeat, but said the referendum did accomplish something big by bringing the issue of executive pay to the forefront of public debate.
"In the future, C.E.O.'s and boards of directors are going to have to think very carefully about how they justify multimillion-franc compensation," the Swiss Social Democratic Party told the Times
Swiss Voters Reject Measure Curbing Executive Pay
by EYDER PERALTA
November 24, 2013 4:07 PM
Members of the Swiss trade union Unia, supporting a referendum to limit the pay of executives to 12 times that of a company's lowest-paid employee, demonstrate in Zurich in August.
Arnd Wiegmann/Reuters/Landov
Swiss voters rejected a measure on Sunday that would have capped executive pay to no more than 12 times that of the company's lowest paid worker.
As NPR's Eleanor Beardsley reported, the ballot initiative was driven by the youth wing of the Social Democratic Party, which said that CEO pay has been increasing at an alarming rate. Twenty-five years ago, David Roth, head of the party's youth wing, told Eleanor, Swiss CEOs made six times more than the average worker. Today they earn 40 times as much.
The Swiss, however, voted against the measure in large numbers — 65.3 percent of them rejected the measure.
The AFP reports that in the lead-up to the referendum, the business lobby launched a massive campaign against the measure, warning that the so-called 1:12 law would lower tax revenue and make Switzerland less competitive in the business world.
The AFP adds:
"Their message got across: all of Switzerland's 26 cantons and a full 65.3 percent of all voters rejected the initiative, according to final results released by public broadcaster RTS.
"Swiss Economic Affairs Minister Johann Schneider-Ammann hailed the result, saying it would allow the Swiss economy to remain competitive.
"But he urged big bosses to take note of the public outrage over some of their salaries, pointing out to reporters that 'I do not appreciate the excessive salaries received by a handful of managers.'"
The New York Times reports that supporters of the measure accepted defeat, but said the referendum did accomplish something big by bringing the issue of executive pay to the forefront of public debate.
"In the future, C.E.O.'s and boards of directors are going to have to think very carefully about how they justify multimillion-franc compensation," the Swiss Social Democratic Party told the Times