TORONTO, Oct. 26, 2009 (Xinhua News Agency) -- While U.S. lawmakers are expected to pass legislation this year making say on pay mandatory for U.S. firms, Canada's largest companies have worked out a voluntary approach to compensation reform, a bank source in Canada said on Monday.
Canada's nine largest banks and insurance companies have reached an agreement on giving shareholders a vote on executive compensation, a practice known as "say on pay" next year, said Deborah Alexander, general counsel at Bank of Nova Scotia. (TSX:BNS.P) (TSX:BNS.T) (TSX:BNS.O) (TSX:BNS.N) (TSX:BNS.M) (TSX:BNS.J) (NYSE:BNS) (TSX:BNS)
"We thought it was best for all our shareholders if we had a common approach, so that everyone would be on a level playing field," she said.
"I think we achieved something in this country that hasn't been achieved anywhere else," she said.
Canada's seven largest banks as well as insurers Sun Life Financial (TSX:SLF.B) Inc. (TSX:SLF.A) (NYSE:SLF) (TSX:SLF) and Manulife Financial Corp. (TSX:MFC.D) (TSX:MFC.C) (TSX:MFC.B) (TSX:MFC.A) (NYSE:MFC) (TSX:MFC) have met and agreed to use the same resolution, Alexander said.
Meanwhile, shareholder groups in Canada are also lobbying dozens of other companies to adopt say on pay next year.
