Why Rich Switzerland Is Livid About Rich-Executive Payouts
Daniel Vasella, chairman and former CEO of Swiss drugmaker Novartis, gives an address at the annual general meeting in Basel on Feb. 26, 2010
Switzerland, more than a year after igniting the occupy Wall Street movement in the U.S. The outrage over corporate greed reached a boiling point last week with the news that Daniel Vasella, chairman of the Swiss pharmaceutical giant Novartis, was offered a $78 million payout to ensure he would not work for a rival company after his retirement on Feb. 22.
The announcement sparked a public outcry rarely seen in this usually placid country. Politicians and unions called the compensation “disgusting,” while an attorney representing small shareholders filed a lawsuit accusing Novartis and Vasella of the misuse of company funds. Faced with the mounting criticism, this week Vasella — who reportedly earned $14 million last year — announced he would forgo the payment because “many people find the amount unreasonably high.”/.../
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