CPP investment board says drop stock options

By David Brown
|Canadian HR Reporter|Last Updated: 03/25/2003

One of the country’s most powerful institutional investors put itself squarely in the dump-stock-options camp last month.

The Canada Pension Plan Investment Board (CPPIB), said it wants companies it invests in to stop granting stock options to executives and employees because they encourage short-term thinking.

“We will support boards and management teams through difficult periods as long as their long-term visions and strategies are clear and compelling,” states the 2003 Proxy Voting Principles and Guidelines. “Management’s priority should be to enhance sustainable long-term profitability.” The CPPIB maintains stock options run counter to this objective.