Nestle chairman sounds warning to Swiss government over increased regulation

The Chairman of Nestlé, Peter Brabeck-Letmathe, has used the company’s annual general meeting in Lausanne to express his concern that the political and regulatory environment in Switzerland is making life difficult for publically listed companies. Brabeck-Letmathe was talking about the new ‘Minder Initiative’, which limits executive pay and has banned other perceived hallmarks of corporate excess such as golden handshakes and golden parachutes for executives. “It is now crucial to respect the Swiss electorate's decision and to find practical legislative solutions which safeguard the long-term attractiveness of Switzerland as a business location,” he said. “We must find a new consensus between the economy, politics and society. Efforts need to be made on all sides to deepen mutual understanding and to find the right balance. Nestlé wants to stay in Switzerland. Nestlé – the management and the employees – want to continue to feel welcome in this country and contribute to its success story, not only today, but also in the future.” Some 10,000 of Nestlé’s 339,000 employees are based in Switzerland, and the company spends more than 60 per cent of its research and development budget in the country. The 3000 shareholders attending the AGM elected former Corporate Executive Vice President for Greater China and Southeast Asia Region of Amway Corporation, Eva Cheng to the board.