- Nestle SA, the largest food company in the world, announced changes to its corporate bylaws to comply with new Swiss limits on compensation, an issue that will be voted on in an upcoming meeting on executive pay.
- The vote from investors will determine board pay and the cap set for salaries of top executives.
- Switzerland is serious about requiring binding shareholder pay; those that exceed the limits set, both in terms of paying out or accepting, can be fined or jailed for up to three years.
This policy is regarded as an attempt to limit "fat cats" in the industry. Last year Nestle Chief Executive Officer Paul Bulcke was paid 9.3 million Swiss francs ($10.6 million), a reduction of 6.7% in pay from the previous year. While that figure is not too shabby, it pales in comparison to the huge sum paid to the former Heinz CEO, mentioned in this Food Dive brief. Perhaps Switzerland has the right idea in this regard.