News and Media

September 26, 2018

Donald J. Savoie, First Winner of the Yvan Allaire Medal in Governance

Montreal, September 26, 2018 — The Royal Society of Canada has awarded the first Yvan Allaire Medal in Governance to M. Donald J. Savoie, OC, ONB, FRSC, D.Phil., D. ès L., professor and holder of the Canada Research Chair in Public Administration and Governance at the Université de Moncton. This medal, along with a $5,000 […]

August 20, 2018

Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Activist hedge funds have become capital market and financial media darlings. The Economist famously called them “capitalism’s unlikely heroes” in a cover story, and the FT published an article saying we “should welcome” them. But they are utterly reviled by CEOs. And at best, their performance is ambiguous. The most comprehensive study of activist hedge fund performance that I have read […]

August 1, 2018

Dual-class shares: the good, the bad and the ugly

[ … ] Following an examination of Canadian industrial companies, Allaire (2016) suggested that financial performances of these Canadian DCS companies would outperform the peers over 5-, 10-, and 15-year periods (see Exhibit 1). Allaire considered that the superior financial performance would help these firms maintain their headquarters in Canada and argued that such share structures […]

June 21, 2018

Why Canadian CEO pay has soared over the past decade

When shareholders of Canada’s big banks opened their proxy voting forms in early 2008, they found a striking new proposal on the ballot. Submitted by a small ethical mutual fund company, the resolution called on banks to give investors an annual vote on how executive pay was designed. Bank boards initially opposed the motion as […]

June 7, 2018

Board members are independent but are they legitimate and credible?

Montreal, June 7, 2017 – Today, the Institute for Governance (IGOPP) is publishing a policy paper entitled: From independent to legitimate and credible – The challenge facing boards of directors. Back in 2008, IGOPP had noted that, despite its presumably crucial role and its omnipresence, the concept of «independent» board members lent itself to several […]

May 18, 2018

Willis Towers Watson offers 2018 say-on-pay snapshot

In this snapshot review by Willis Towers Watson of U.S. say-on-pay and other compensation-related votes, WTW found that average support for say on pay remained high at 91%.  In addition, where ISS identified “high” levels of concern leading to negative recommendations on say on pay, 84% related to pay-for-performance concerns (compared to 75% in 2017).  WTW analyzed the […]

April 30, 2018

The Long-Term Survival of Family Business

Introduction The Clarkson Centre for Board Effectiveness (CCBE) at the Rotman School of Management has a mission to study corporate governance and provide practical insights for companies about what good governance means. For more than a decade, we, like many of our peers, embraced the widely-held and publicly-listed model as the paradigm of good governance. […]

April 5, 2018

It’s hunting season, as activists and regulators open fire on Canada’s businesses

The corporate hunting season is officially underway, an annual ritual during which shareholder parties, armed with proxies and other weapons of democratic destruction, set out to bag executives and directors for failing to deliver. The list of potential corporate failings is all encompassing. Anything and everything is a target, from executive compensation to diversity policies […]

January 17, 2018

Liberals launch a fresh attack on corporations. They may not win

As a longtime member of the Association of Correspondents Tracking the War On Corporations, I have embedded with troops of lawyers, activists and corporate officials through the great battles of the last several decades. From the failure to ward off the stakeholder invasion of the 1990s to the great executive retreat at the Battle of […]

January 2, 2018

Canada’s top CEOs will make $50K before noon on Jan. 2

If they were to live on the average worker’s pay, Canada’s CEOs could stop working at around 11 a.m. on Jan. 2 and take the rest of the year off. That’s because by 10:57 a.m. on the second day of the year, their earnings will have already hit $49,738, the equivalent of the country’s average […]