Europe's most democratic country - Switzerland - has found a way to limit executive pay (see Swiss Voters Approve a Plan to Severely Limit Executive Compensation). It was decided in a referendum:
The vote gives shareholders of companies listed in Switzerland a binding say on the overall pay packages for executives and directors. Pension funds holding shares in a company would be obligated to take part in votes on compensation packages. In addition, companies would no longer be allowed to give bonuses to executives joining or leaving the business, or to executives when their company was taken over. Violations could result in fines equal to up to six years of salary and a prison sentence of up to three years.