Don’t fear ‘say on pay’ votes (Editor’s notes)

Shareholders showing support for compensation plans
By Todd Humber
|Canadian HR Reporter|Last Updated: 04/19/2010

The results from some of the first so-called “say on pay” votes at Canada’s big banks — where shareholders give a non-binding thumbs up or thumbs down to executive compensation practices — are both interesting and surprising.

Given the tough economic times, a general backlash in the public against high compensation and a global recession that many commentators blamed on greedy financial institutions, one would have expected to see some low support for the way banks are paying top executives.

Instead the scores are off the charts, as outlined in one of our cover stories. (“‘Say on pay’ garners favourable results” ) Laurentian Bank clocked in at 99.2 per cent approval from shareholders. Canadian Imperial Bank of Commerce (92.9 per cent), Royal Bank of Canada (91.1 per cent) and Bank of Montreal (92.9 per cent) all received overwhelming support for executive compensation practices.