Unveiled Amounts: The True Earnings of CEOs at Switzerland's Top Corporations
In a recent report titled 'Top salaries continue to rise, minimum wages at risk', the Unia trade union has highlighted the growing wage gap between CEOs and the lowest-paid employees in Switzerland's largest corporations. The report reveals that the average CEO salary of the 39 largest Swiss companies in 2024 was approximately 13.2 million Swiss francs. Seven CEOs earned more than 10 million Swiss francs annually, with some reaching up to about 16.9 million francs, a staggering 18% increase from the year before. For instance, Novartis CEO Vasant Narasimhan earned an annual income of CHF 19.2 million in 2024, which is 333 times higher than the lowest employee salary at the firm. UBS's chief executive, Sergio Ermotti, earned 14.9 million Swiss francs, a salary 276 times more than the lowest UBS salary in 2024. Galderma CEO Flemming Ørnskov earned CHF 19 million, a figure 298 times more than the lowest salary at his company. In contrast, Unia union president Vania Alleva has called for a general wage increase of 2 to 2.5 percent, and higher minimum wages of CHF 4,500 for unskilled workers and CHF 5,000 for employees with an apprenticeship certificate. However, pay expert Timon Forrer from the consulting firm Kienbaum believes these demands are unrealistic, with their salary development forecast predicting a 1.3 percent increase. The report also found that the gap between the highest and lowest salaries has been increasing over a number of years. The ratio between the highest and lowest salaries across all 39 companies surveyed is 1:143 on average, slightly less than last year's 1:150. The study also revealed that in nine out of the 10 companies in Switzerland with the highest salaries, bosses received a pay rise in 2024. Dividend payments to shareholders in 2024 for the 39 companies surveyed would have amounted to CHF 46 billion. Despite these findings, Unia is calling for change to reduce the wage gap. They compared the highest incomes with median wages in Switzerland, estimating that a person with a median salary would have to work for 228 years to earn the annual salary of the Novartis CEO. The nationwide median wage in Switzerland was estimated to be around CHF 84,000 in the report. The report serves as a stark reminder of the wide income disparity in Switzerland's corporate sector and underscores the need for measures to address the issue and promote fairer wages for all employees.
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