Canadian Insights

Holding Steady with Say on Pay

While Say on Pay is voluntary in Canada, many S&P/TSX 60 companies held Say on Pay votes in 2016.

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In contrast to the mandatory (but non-binding) advisory votes on executive compensation (“Say on Pay” votes) in the U.S., Say on Pay remains voluntary in Canada. Close to 80% of the S&P/TSX 60 companies have a Say on Pay vote…

Treasury, Cash Settled and Market Purchase Share Unit Plans

Meridian explains alternatives for settling share unit plans, as well as proposed changes to the TSX Company Manual.

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The structure of a share unit plan and how a share unit is settled can have a significant impact on its taxation and accounting treatment. This update: Considers three alternative share unit plans that are generally used in Canada and…

Choosing the Right Performance Peer Group

Why companies are using PSU plans, and how to use them effectively.

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More and more public companies are adopting performance share unit (PSU) plans as a significant component of long-term (equity) compensation for executives.[1] The most common PSU performance metric is total shareholder return (TSR – i.e., stock price growth plus dividends)…

Canadian Regulatory and Governance Update

Canadian Securities Administrators Publish “Guidance for Proxy Advisory Firms”

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There have been a number of recent regulatory and governance changes affecting executive compensation and governance. Canadian Developments 1. Canadian Securities Administrators Publish “Guidance for Proxy Advisory Firms” On April 24th, the CSA published for comment their proposed Policy for…

Review of Horizontal Benchmarking and Its Impact on CEO Compensation and Pay Disparity

Meridian’s Analysts Share Their Findings After Surveying Academic Studies And Compensation Trends And What They Have To Say About Horizontal Benchmarking And CEO Pay

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Executive Summary Introduction Meridian was asked by a group of six Canadian banks (“the Banks”) to review horizontal benchmarking and its potential impact on CEO Compensation and pay disparity to assist with their consideration of concerns raised in shareholder proposals.…

Staying Fresh

It May be Time to Take a Look at Your Proxy Disclosure

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Developments in executive compensation continue at a strong pace. Whether driven by regulation, the competitive talent market or the evolution of strong governance process, these developments find their way into the proxy circular in some form. Public companies have been…

CCGG Releases New Executive Compensation Principles

The 6 new Principles Represent Best Practices for Canadian Institutional Shareholders

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The Canadian Coalition for Good Governance (CCGG) has released its new executive compensation principles. The CCGG represents Canadian institutional shareholders who manage almost $2 trillion of assets on behalf of major shareholders and is viewed as a leader in promoting…