Nestl considers a Swiss exit if executive salary is capped
NESTLÉ, the world’s biggest food company, has warned that it could pull out of its home base in Switzerland if the government’s proposal to cap top salaries is approved.
Group chairman Peter Brabeck-Letmathe yesterday said: “It would be the beginning of an end,” and said that if the move succeeded: “We must ask ourselves whether Switzerland is still the right location for us.” Brabeck-Letmathe received a 13.9m Sw Fr (£8.06m) total salary, including bonuses, for 2008.
The global economic crisis and mounting public uproar against excessive pay for executives has meant the Swiss Federal Council, has been studying measures to cap “abusive” pay.
But Brabeck-Letmathe said that to cave to “populist pressure” would be “damaging for the location”. “Switzerland was once known for not ceding to such demands.” A recent landmark settlement with USauthorities saw Swiss bank UBS agree to name the identities of 4,450 US clients. Many feel it means the end of Swiss banking secrecy.
A Nestlé spokesman told City PM that the group would be considering all options.