Canadas five major banks will face say-on-pay shareholder proposals this proxy season, the first among Canadian companies. But proponents wont get support from the Canadian Coalition for Good Governance, an organization of pension funds, money mangers, and other investors.
Canadian Imperial Bank of Commerce will be the first to face the proposal at its Feb. 28 annual meeting, according to Shareholder Association for Research and Education, Vancouver, British Columbia. Royal Bank of Canada will follow with its annual meeting Feb. 29; Bank of Nova Scotia March 4; National Bank of Canada March 10; and Toronto Dominion Bank April 3.
Meritas Mutual Funds, Cambridge, Ontario, introduced the proposals calling for an annual shareholder advisory vote on executive compensation.
Toronto-based CCGG said in a statement that it will not propose or support recommendations for regulatory change that will mandate advisory shareholder votes1 on compensation reports for Canadian issuers, nor will it recommend universal support for all say-on-pay resolutions that may be brought forward in the 2008 proxy season.
Laura ONeill, director-law and policy, Shareholder Association for Research and Education, said say on pay is an idea that appeals to a wide range of shareholders. The not-for-profit association works with pension funds and other institutional investors on corporate governance and social responsibility issues. Barry B. Burr