May 2 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
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
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