Ethos criticizes inadequate CEO salaries and sustainability reports (cross-border guide)
The Ethos foundation criticises the high salaries of CEOs and sustainability reports of Swiss listed companies.
Contesto
In short - CEO salaries increased by 29% in 5 years - Sustainability reports approved only in 37% of cases - Female presence in BOARDS OF DIRECTORS at 30.4% ## Key facts - What : Criticism of CEO salaries and sustainability reports - When: Recently disclosed study - Where: Switzerland - Who: Ethos Foundation - Amount: Average CEO salaries at CHF 8.8 million The Ethos Foundation expressed dissatisfaction with companies listed on the Swiss stock exchange, criticizing managers' salaries and sustainability reports. According to the study, the heads of large groups earn more and more, with an increase of 29% in five years, reaching an average of 8.8 million francs. Eight executives pocketed over 10 million francs. ### Salary increases The salaries of the CEOs of the companies that make up the SMI Leading Index have increased by 29% in five years, reaching an average of CHF 8.8 million. This increase has raised criticism from Ethos, which had already criticized the nearly 25 million paycheck of Novartis CEO Vasant Narasimhan last February. ### Sustainability Reports Corporate sustainability reports have been judged inadequate by Ethos. In 2026, the foundation recommended adoption only 37% of the time, less than the 40% recorded the previous year. In addition, 53 companies did not have their sustainability claims verified by an independent body.
Dettagli operativi
Criticality analysis Ethos's critique of CEO salaries and sustainability reports of Swiss listed companies raises several issues relevant to the country's economic and social context. The high salaries of managers, in particular, can have significant implications on the cost of living and the distribution of wealth in Switzerland. ### Impact on Cost of Living High CEO salaries can help widen the gap between higher and lower incomes, affecting the cost of living in Switzerland. This can have consequences on the purchasing power of citizens and on the economic stability of the country. ### Sustainability and Social Responsibility Sustainability reports are an important indicator of corporate social responsibility. Failure to adopt sustainable practices can have negative consequences on the environment and society, affecting the quality of life in Switzerland. Ethos's critique underscores the need for companies to adopt more sustainable and responsible practices. ### Female presence in the BOARDS Despite the criticism, there are also positive notes in the Ethos study. The female presence on boards of directors increased, reaching an average of 30.4%. However, 78 companies remained below the legal requirement of 30%, and 22 BOD were completely devoid of female presence. This indicates that despite the ## Useful tools to protect your net income To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.
Punti chiave
What to do to improve the situation To address the issues raised by Ethos, a joint commitment from companies, governments, and civil society is required. Here are some concrete actions that can be taken: ### Actions for companies - Review remuneration policies: Companies should review their remuneration policies to ensure that CEO salaries are proportional to company performance and do not contribute to excessive inequalities. - Improve sustainability reports: Companies should adopt more sustainable practices and improve the transparency of their sustainability reports, having the statements verified by independent bodies. - Promote gender diversity: Companies should commit to achieving and exceeding the legal requirement of 30% female presence on boards of directors, promoting a more inclusive corporate culture. ### Actions for governments - Regulate CEO salaries: Governments can introduce regulations to limit CEO salaries and ensure a more equitable distribution of wealth. - Incentivize sustainability: Governments can introduce incentives for companies that adopt sustainable practices and penalties for those that do not. - Promote gender equality: Governments can introduce laws and incentives to promote gender equality in corporate leadership. ### Actions for civil society - Monitor and report: Civil society can monitor corporate practices and report any irregularities or inadequacies. - Promote awareness: Civil society can promote awareness on the issues of sustainability and gender equality, raising public awareness and influencing corporate and government policies. For more information and to calculate your salary, visit our salary calculator. Source: swissinfo.ch
Punti chiave
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Frequently Asked Questions
- What is the average increase in CEO salaries in Switzerland?
- According to the Ethos study, the salaries of the CEOs of the companies that make up the SMI lead index have increased by 29% in five years, reaching an average of CHF 8.8 million.
- What is the adoption rate of sustainability reports?
- In 2026, the Ethos foundation recommended the adoption of sustainability reports only 37% of the time, less than the 40% recorded the previous year.
- What is the presence of women on the boards of directors?
- Women's presence on boards averaged 30.4%, compared to 28.8% twelve months ago. However, 78 companies remained below the legal requirement of 30%, and 22 BOD were completely devoid of female presence.