National Bank, CIBC and RBC give shareholders non-binding vote
Starting next year, shareholders of three large Canadian banks will get to voice their opinions on executive pay.
National Bank was the first to announce its say-on-pay policy and RBC and CIBC adopted similar policies after their annual meetings.
The majority of RBC and CIBC shareholders voted in favour of proposals that would give them a non-binding vote on executive compensation plans.
Big institutional shareholders and small shareholders' activists have been lobbying for such a policy for several years.
While it's a non-binding vote, shareholders will be able to send a clear message to the board of directors if they're opposed to the compensation plans, Richard Powers, associate dean at the Rotman School of Management at the University of Toronto, told the Toronto Star.