CCGG on Say on Pay Federal Legislation

CCGG was mentioned in an article by The Globe & Mail‘s David Milstead entitled, “Shareholders’ Say on Pay to have strength of federal law behind it” on April 12.

The article details the recent Say on Pay provision introduced in Ottawa for all federally-incorporated companies as part of the Budget Implementation Act. “Under the amendments to the Canada Business Corporations Act (CBCA), companies must present their ‘approach to remuneration’ to shareholders each year, conduct a vote on it, and disclose the results,” Milstead writes.

“The Shareholder Association for Research and Education, or Share, has been one of the governance groups advocating for Say On Pay for years, joined by the Canadian Coalition for Good Governance. The movement started with proposals in 2008 on the proxies of each of the major Canadian banks. Today, Share estimates 220 Canadian companies conduct Say On Pay votes, including 71 per cent of the 200-plus members of the S&P/TSX Composite Index and 52 of the companies in the S&P/TSX 60.”

According to the Innovation, Science and Economic Development Canada spokesman Hans Parmar, “the amendments are intended to establish better oversight of executive compensation by shareholders and impose more market discipline on compensation approaches.” Though the new provision will not apply to provincially-incorporated companies, the intent is to make it universal.

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