Connect to share and comment

Germany judges Swiss corporate pay curb 'interesting'

PlacardEnlarge
(Globalpost/GlobalPost)

Germany said Monday that a decision by Swiss voters to back moves to curb executive pay was "interesting", warning excessive salaries can create "mistrust" in the economic system.

A day after Switzerland overwhelmingly backed draft legislation which will ban a string of corporate financial perks, including golden parachutes for departing executives, the German government spokesman described it as an "interesting result" that was "certainly worth examining carefully".

"It is quite clear that excessive compensation, excessive salaries are capable of sowing mistrust towards our economic system in many people and we don't want that," Steffen Seibert told a regular government news conference.

He noted that the European Commission planned to present by year's end a proposal to give shareholders more control over corporate pay.

"We will in turn look at what they compile as a proposal by the end of the year," Seibert told reporters.

Germany implemented a law in 2009 concerning reasonable executive remuneration, he recalled.

elr/kjm/mfp

http://www.globalpost.com/dispatch/news/afp/130304/germany-judges-swiss-corporate-pay-curb-interesting