The Globe and Mail reports in its Wednesday edition that each spring, the spotlight falls
on excessive executive pay
with proxy season disclosures for
annual shareholder meetings.
The Globe's guest columnist Garfield Emerson writes that investors froth at the
newly divulged disconnects between
high compensation packages
and mediocre financial
performance. Canadian Imperial Bank of Commerce, Barrick Gold,
Onex, Air Canada, Loblaw,
MDC Partners and Yamana Gold
were among this year's examples.
The assumption that equity-based
compensation for executives
aligns their interests with
the shareholders is undermined
when disproportionate stock
incentives are awarded by company
directors. There is growing
skepticism about the idea that
particular CEOs are indispensable.
CEO remuneration
should be assessed within
a competitive, market-based
economy.
The board of directors is responsible
for compensation policies
and practices. But independent
board chairs need to step up publicly
to their obligations for governance
leadership. More direct disclosure
is needed to support
enhanced corporate accountability.
Petitioning
for shareholder
rights to elect directors is a path
forward.
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