The City of London was today eyeing with suspicion the latest attempt to clamp down on pay — a referendum in Switzerland yesterday — but admitting that EU rules on bonuses remain of greater concern.
Swiss voters yesterday backed a plan giving shareholders sweeping authority over executive pay, the latest in a series of moves aimed at curbing what is seen as excessive remuneration levels at top companies.
About 68% of those who voted supported the Minder Initiative, named after the businessman and politician who created it. The measure enables shareholders of Swiss companies to approve or block proposed compensation for corporate executives and board members.
David Buik of Cantor said: “It is more sensible than the action taken by the EU on bonuses — marginally — which is ill thought-out, counterproductive poppycock. Very, very damaging for not only the City, but also the EU, if it wants to compete in the global banking market.”
The EU wants to limit banker bonuses to a maximum of one year’s pay.
