Saturday, 12 January 2008

Canadian shareholders turn down say on pay

Here's something a bit odd, the Canadian Coalition for Good Governance has said that it won't support regulatory changes that introduce an advisory investor vote on remuneration, or necessarily back resolutions seeking to make companies adopt a vote.

"It is the role of the board, and in particular the compensation committee, to establish appropriate executive compensation plans that clearly align the interests of shareholders and management," said David Beatty, Managing Director, Canadian Coalition for Good Governance. "By working constructively with corporate Canada, organizations like ours can provide perspective on the difficult balance between market forces and shareholder interests in the arena of executive pay but it is not our role to find that balance."

"We will look to corporate Canada to continue to improve the executive compensation process. Moving forward, if we feel progress on this issue has stalled, we may support resolutions such as "Say on Pay" to ensure the voice of the shareholder is heard," said Beatty.

Full release here.

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