3 Swiss companies to allow ‘Say on Pay’

Three major Swiss companies agreed to allow their shareholders to advise the firms on their pay packages for management, a non-profit group said.

In September 2008, the Ethos Foundation for Sustainable Development in Geneva, Switzerland, and eight pension funds asked engineering group ABB, Credit Suisse Group, Nestle, Novartis and UBS to give shareholders a Say on Pay option, which would be an advisory vote Ethos said.

Food giant Nestle and banks UBS and Credit Suisse have agreed to let shareholders vote on executive remuneration, the group reported Friday.

ABB and drug maker Novartis have yet to decide on the issue. Novartis has a Say on Pay resolution set for its annual meeting in May. ABB is also set to consider the issue in May.

Swiss law does not allow for a binding shareholder vote on executive pay, the group said. But, the group commends the decision of three of the five targeted companies to give the shareholders a say, a statement from the group said.

This is a step toward better self regulation with regard to executive remuneration, the group said.