According to a study released by trade union Unia, the salary disparity between the highest- and lowest-paid workers in Switzerland increased in 2023, with top managers making an average of 143 times more than their lowest-paid staff.
According to the report, the pay disparity increased from 139 times in 2022, with UBS, the largest bank in the nation, having the biggest difference.
Pay at the bank has become a political hot topic after UBS Chief Executive Sergio Ermotti’s 14.4 million Swiss franc ($16.99 million) 2023 compensation was criticized earlier this year by Swiss Finance Minister Karin Keller-Sutter.
According to UBS, it pays its workers market-competitive salaries based on their position, background, and region.
The bank reported that it has raised total salaries for all Swiss workers up to and including middle management by 2.25%, which is marginally more than the increases in the rest of the financial industry.
According to the report, foodmaker Nestle came in third place with the biggest salary gap, followed by drug maker Novartis. Requests for comment were not immediately answered by Nestle or Novartis.
In contrast, the High Pay Centre, a think tank, reports that the median FTSE 100 CEO in Britain last year made 120 times more than the country’s median salary.
According to Unia, the CEO salary gap in Switzerland reached a record high of 148 times higher than the lowest level in 2019.
“The gaps between the highest and lowest paid workers are huge and getting bigger,” said Unia economist Noemie Zurlinden.
According to the authors of the report, despite companies’ ability to pay more due to large dividend payouts and share buybacks, inequality in Switzerland has persisted.
According to Zurlinden, real wages have stagnated as a result of inflation, meaning that while the wealthiest are getting richer, those on low and middle incomes have less money to spend.
“It cannot be justified that the CEOs earn so much more than ordinary workers. A better redistribution of the economic gains is especially important in times of rising costs of living.”
