Shareholders call for new priorities for manager salaries
Shareholders in Switzerland want a rethink on how managers are paid and demand that priorities regarding corporate governance, sustainability and corporate social responsibility (CSR) be redefined, a survey has found.
“Investors consider compensation systems not to be sufficiently aligned with social and environmental priorities and judge adjustments to bonus payments due to Covid-19 highly controversial,” according to a corporate governance studyExternal link by Zurich-based consultants SWIPRA, published on Tuesday.
Two-thirds of Swiss shareholders feel that environmental or social goals, such as equal pay, are currently given too little consideration in the assessment of managers’ salaries, it said. Nearly half of them also say that financial goals continue to be given too much weight in existing remuneration systems.
They were also asked whether the original targets for bonuses for 2020 should be kept, given the Covid-19 crisis. Some 44% of non-Swiss shareholders think the original targets should be maintained; only 17% of Swiss shareholders share this view.
Effects of Covid
The real effects of the coronavirus pandemic on corporate strategies have so far been limited, however.
The majority of the companies (60%) see little or no influence. That said, 51% of the companies believe that liquidity and capital management are becoming more important and 27% said the pandemic was strengthening the integration of CSR into corporate strategy.
In collaboration with a team of researchers from the Institute of Banking and Finance at the University of Zurich, all companies listed on the Swiss Performance Index SPI as well as institutional investors from Switzerland and abroad were invited to participate in the eighth SWIPRA survey on corporate governance in Switzerland.
During the survey period (August/ September 2020), 73 Swiss companies listed on the SIX Swiss Exchange, representing about 77.2% of the market capitalisation of the SPI, and 76 institutional asset managers and asset owners from Switzerland and abroad participated. The participating investors, around 40% of them based abroad, represent at least 27.2% of the equity investments managed worldwide and hold substantial stakes in Swiss companies.
(SWIPRA)
On November 29, Swiss voters will decide on a proposal to impose due diligence rules on Swiss-based firms active abroad. It stands a good chance of passing, according to a recent poll.
More
More
Responsible business initiative enjoys solid support
This content was published on
A proposal to impose due diligence rules on Swiss-based firms active abroad currently stands a chance of winning voters’ approval, pollsters say.
Bodycams: essential for good law enforcement, or a privacy risk?
Did you ever come across bodycams in your place of residence and if so, how do you think the use of bodycams alter the relationship between the public and (transport) police?
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Hotel rates already spiking ahead of 2025 Eurovision in Basel
This content was published on
A week after Basel was chosen to host the Eurovision Song Contest next year, hotel prices are soaring in neighboring cities.
Swiss Post restructure going ahead as planned, says CEO
This content was published on
The postal service is going ahead with planned cuts to its nationwide network of branches, regardless of political initiatives, says Robert Cirillo.
Swiss athletes grab marathon double gold at Paralympics
This content was published on
Catherine Debrunner won her fifth gold at the Paris Games with a victory in the women’s marathon on Sunday, while Marcel Hug took gold in the men’s.
Helicopter evacuations from Saas Valley to continue on Monday
This content was published on
Some 550 tourists were flown out of the Saas valley on Saturday. After further clearance work on Sunday, evacuations will resume on Monday.
Swiss government pensions come under pressure in parliament
This content was published on
A parliamentary committee is favour of scrapping the generous pensions enjoyed by former government ministers and federal judges.
This content was published on
Appointed in April as the EU's incoming ambassador, Slovak man Miroslav Lajčák will ultimately not take up the post in Bern this year.
SNB boss: as a leading financial hub, Swiss must accept risks
This content was published on
The outgoing head of the Swiss National Bank, Thomas Jordan, says the country should aim to preserve its leading financial position.
Top Swiss court rules against prostitution exclusion zone
This content was published on
The Federal Court ruled that a Swiss town went too far in banning prostitution within a 100-metre radius of certain sensitive locations.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Proposed investment ban targets armament industry
This content was published on
A left-wing proposal to ban investments by the Swiss National Bank and pension funds in weapons manufacturing companies comes to a vote in November.
Multinationals must take responsibility for supply chain workers in the pandemic
This content was published on
It’s easy to do good during a period of economic growth but it is in times of crisis that companies reveal their true commitment to workers.
Sustainable Swiss businesses, politics and the ‘Greta Effect’
This content was published on
How serious are businesses and institutions about environmental and social issues? Sustainability expert Gretel Gambarelli gives her insights.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.