Vasella’s $78 Million Novartis Payout Boosts ‘Fat-Cat’ Crackdown

Novartis AG’s 72 million Swiss-franc ($78 million) payout to prevent outgoing chairman Daniel Vasella from working for a rival undermines the cause of campaigners fighting to avoid tougher curbs on executive pay in Switzerland.

“This news is a setback for the campaign,” said Meinrad Vetter, an official at Economiesuisse, which is lobbying Swiss voters to reject a proposal to have shareholders set compensation for top executives. “There will be talk of anger and excessive salaries, rather than about what the initiative really means for Switzerland as a business location.”