June 2013

On 14 June 2013, the Swiss Federal Council (the executive branch of the Swiss federal government) submitted for public consultation a draft ordinance on say-on-pay and excessive executive remuneration. The ordinance will implement the new provisions of the Swiss Federal Constitution resulting from the affirmative vote by the Swiss people and cantons in March 2013 on the so-called "rip-off initiative" (also known as the "Minder initiative", introduced by the politician Thomas Minder). The draft ordinance sets forth a temporary regime which is expected to enter into effect on 1 January 2014 and which prevails over existing Swiss corporate law until the Swiss Parliament translates the Minder initiative into law.

This newsflash summarizes the contents of the draft ordinance and the contemplated transitional regime.