Tyco to move to Ireland as Swiss tighten laws on CEO pay, immigration
May 2 (Reuters) - Security systems maker Tyco International said its board had approved a proposal to move the company's headquarters to Ireland from Switzerland, citing recent Swiss laws capping executive pay and tightening immigration rules.
Under a proposal called Minder Initiative, Switzerland is pushing public companies to allow shareholders to give a binding vote on executive pay amount, veto executive pay proposals and ban big rewards for new and departing managers.
"Recent changes to Swiss law impacting regulatory environment are of great concern to us," Tyco spokesman Steve Wasdick told Reuters.
Wasdick said the proposals put Tyco at a competitive disadvantage, limiting its ability to attract, retain and move talent in key roles and posing a risk to shareholder interests.
Switzerland, so far considered pro-business for its low taxes, stable politics and business-friendly laws, has received criticism from companies for these laws.
Ireland is a popular destination for U.S. companies seeking new tax domiciles.
Pentair Plc, which bought Tyco's flow control business in 2012, also moved to Ireland from Switzerland in December last year. Others U.S. listed companies already domiciled in Ireland are Eaton Corp Plc and Ingersoll-Rand Plc.
Tyco said it expected the move to be tax neutral, and its effective tax rate would likely stay near current levels.
Ireland's business-friendly atmosphere, well-developed legal and regulatory framework and good corporate governance standards can help Tyco maximize returns for shareholders over the long term, the company said in a statement.
Tyco's shareholders will vote on the proposal at a special general meeting.
The company's shares were up slightly at $40.86 on Friday afternoon on the New York Stock Exchange. (Reporting by Mridhula Raghavan in Bangalore; Editing by Kirti Pandey)