Sunday, October 20, 2013

Executive pay subject to more shareholder caution, after recent Swiss vote

     Lots of easy to find, and new, information upon the internet, through looking at Google under Switzerland and new referendums; the one detail I recently found most interesting related to the 2013 federal referendum proposing a limitation upon executive bonuses etc. within Swiss national,  public companies.
     This idea was initiated by an individual, back in 2008. He was upset at the poor performances of some large Swiss companies which had paid its executives very large bonuses.
     After a lot of effort  in obtaining sufficient signatures to put the matter to a vote, and lots of money spent, especially  by opponents of the proposal, and opposition by the Swiss government, it was passed by a 62% majority. Some 1,616,000 people voted in favour, 761,000 against. All 20 full cantons and the 6 half cantons favoured it.
     Other details within the very fulsome web page point out that supporters of the proposal spent 200,000 Swiss Francs, opponents 8 million. Eleven cantons permitted overseas voters to vote online, after the federal council permitted that method.
     What the law does is require not only that shareholders annually approve the election of the president and management board,   but also the bonus schemes and pay plans for the directors, and even loans granted to such employees,  the  durationof employment contracts of executive officers; and approval of severance packages; it even bans corporate proxy, and requires pension funds to disclose the way they vote.
     Such an amazing involvement by the Swiss people in matters which most of us just shrug at, and ignore - often at our financial peril. About 2,500,000 people voted on the issue.
     And it shows that money does not always sway a majority of voters. Now, why could we in Ontario, or Canada, or even our smaller communities, not improve our democracy, and reduce the proven, great frustrations within it, by permitting such voting on issues - where enough people want to vote upon them?  Tell others; tell your member. Changes can happen, if enough people want them. Even upsetting public demonstrations and concomitant law-breaking should be lessened, if democracy by the majority actually could be more available.


Tuesday, October 15, 2013

Amazing referendums happening!

     So many interesting examples of direct democracy in Switzerland (and one in Canada) recently:
     1. The citizens of the large and powerful Canton of Zurich voted to stop its legislators from providing 200 million Swiss Francs for a new football stadium; which makes one wonder whether the city of North Bay should have permitted a referendum before expanding its coliseum by several million dollars to permit a hockey team to perform there.
    2. The small village of Hodrigen where that giant of a mining company Xstrata Glencore has a plant, and where some 1 million Sw. Frs were recently received from the 360 million  of that huge company's tax,   voted via  a referendum to provide 120 thousand Sw. Fr to aid projects in poorer parts of the world where the  company operates. Now isn't that some sort of altruistic leaning! Should our aid dollars receive similar backings?
    3. In the Italian canton of Ticino, a referendum which garnered 12,000 signatures back in 2011 for such petition just recently voted 65% in favour, to ban the public wearing of head coverings such as the Burka. It would not include carnival masks, dust filters or motorcycle helmets. But it would send a "signal" that people are against militant Islam according to a main proponent, though only a handful of such people are living in that canton.  It was hoped that the signal would be copied elsewhere within the country. We wonder whether it will be heard in Quebec, where a similar sort of effort is being now proposed; (though via a citizen referendum?)
    4. But what about the proposed guaranteed monthly income of 3,000Sw, Fr. for all Swiss adults, about which there has been just signed a petition of some 120,000 Swiss (of a needed 100,000)? It may be voted upon in 2014. Will the Swiss people approve that? Time will tell. But, it certainly has the potential of changing some fabric of that country. Some companies say that they would have to leave  if such a law came into place.
    5. Finally,  in British Columbia the only province in Canada which has   a detailed law about citizens voting in  referendums, there is very interesting effort just being started. It is to permit the legalization of marijuana. There is in B.C. an extremely difficult requirement that to have a binding citizen-initiated referendum one must get ten percent of the citizens in every riding within 90 days to sign a petition wishing such vote. Since the enactment of the enabling legislation in the 1990's, only one such question has managed such a difficult task - one which ultimately barred the HST. But some 1600 volunteers have been obtained to travel the province to obtain such signatures. Will B.C. emulate its neighbour, Washington State to permit adult smoking of  marijuana? Again, time will tell; but it is clearly another example of the pursuit of pure democracy being attempted by earnest citizens.
     Can one find fault in these efforts to involve citizens in the running of their country, countries which deem themselves - democracies?  Yet, where else in Canada, where in Ontario, where in North Bay, can one see similar examples of citizen involvement? The frustrations mount under the current system. Will we see changes here? You can hope they do; or better - try to persuade others that they should happen; - before Egyptian-like explosions happen here;  or before bankruptcies a la Detroit, destroy our very fabric.