National Union of Public and General Employees, Nepean, Ontario, plans use its leverage with a combined C$100 billion (US$101 billion) in affiliated pension assets to challenge what it considers excessive pay of CEOs of Canadian companies in which it invests, according to an NUPGE statement released today.
NUPGE is coordinating the effort with affiliated unions that have joint or sole trusteeship of pension funds, including the C$22 billion British Columbia Municipal Pension Plan, Victoria, Larry Brown, NUPGE national secretary-treasurer and the chair of the committee coordinating the activity, said in an interview.
We will be encouraging our trustees to raise this issue with their plans investment managers, Mr. Brown said in a statement. We would expect them to raise this concern directly with companies where we have a sizable investment. We will also help our trustees develop and sponsor shareholder resolutions calling on companies that our plans are investing in to give investors a vote on the companys executive compensation plan,
Corporations that pay CEOs excessively will have a negative effect on the investment return of our pension assets, Mr. Brown said in the statement.
The 100 top-paid CEOs averaged C$8.53 million in 2006, ranging from $3.06 million to $54 million, the statement said. On average, they are paid more than 218 times the amount of the average Canadian worker, the statement said.