Why I’m backing the proposed Swiss crackdown on CEO pay

A referendum in Switzerland looks set to impose limits on executive pay, says Matthew Lynn. And with a bit of luck, it might even catch on here.

Limits on what senior executives can earn. Laws to give shareholders the final say over the compensation of company boards. This might sound like bits that got edited out of an Ed Miliband speech, but in fact by next month it may just be a description of Switzerland.

One referendum this year forced companies to get shareholders to agree to top salaries and another later this month will, if successful, force them to limit the highest salary they pay to 12 times the lowest.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.