Piketty totally misses the real driver of this huge increase in compensation of U.S. executives: stock options. Thomas Piketty is a French economist and the omnipresent author of Capital in the 21st Century. Since the publication of the English version of his book, Piketty has become the coqueluche of the American left. Although branded as […]

The Institute for Governance (IGOPP) submitted his comments to Industry Canada in response to the Consultation on the Canada Business Corporations Act (CBCA).. We will examine these issues individually to formulate specific recommendations in each case. In its comment document, the IGOPP covered the following topics: Shareholder advisory votes on compensation packages Diversity of board […]

“Yvan Allaire’s recommendation would have securities regulators abdicate their statutory responsibilities. Despite having declared elsewhere that governance by directors of public corporations is “a fiduciary façade for shareholders … largely a mirage” (The limits of “good” governance: Confession of the former chairman of SNC-Lavalin, 2013), Mr. Allaire repeats his earlier argument, suggesting that securities regulators […]

Boards of directors have the best record at extracting good deals for their shareholders. In an opinion piece published in the Financial Post on May 6, (Shareholders should decide takeovers), Mr. Philip Anisman responds to my piece published in the Financial Post of April 30 (Canada needs a new takeover regime). Mr. Anisman recycles the […]

In an opinion piece published in the Financial Post on May 6th, (Shareholders should decide takeovers), Mr. Philip Anisman responds to my piece published in the Financial Post of April 30th (Canada needs a new takeover regime). Mr. Anisman recycles the key arguments of “market discipline” and boards having to dedicate themselves to the singular […]

In this era of speed trading and hedge funds, securities commissions need to adapt to protect  long-term shareholders Ideology can be blinding, even apparently when one’s secular faith involves the simple creed that those who own stocks are presumptively selfless while those who manage corporations are presumptively selfish and untrustworthy. Leo Strine, Chief Justice of […]

After the bruising treatment that Barrick had to endure last year for its indefensible pay packages, the company got the message. The compensation plan it has made public on March 31st goes a long way towards the kind of pay system that all companies should adopt. Having published a policy paper on executive compensation in […]

[…] “Yvan Allaire, executive chairman of the board of the Institute for Governance of Private and Public Organizations, was positive about the plan overall “It’s a giant step in the right direction,” said Allaire, praising the move towards share awards over stock options. Options have fallen out of favor in recent years in part because […]

“Quebec’s market watchdog says it is pursuing talks with other provinces to try to strike a compromise on changes to Canada’s takeover bid and defensive tactics regulation. “The vulnerability of our public companies is a Canadian problem, not only a Quebec one,” Louis Morisset, chief executive of the Autorité des marchés financiers, said in the […]

[…] “Péladeau has also insisted he is committed to the code of ethics of the province’s legislature. But provincial academics and experts aren’t confident that goes far enough. “These measures are insufficient,” Yvan Allaire, the executive chairman of the Institute of Governance and professor at the L’Université du Québec à Montréal, wrote in an opinion […]

[…] «That may be true. As Yvan Allaire of Montreal’s Institute for Governance wrote in an opinion piece this week: “The legislative measures the working group is proposing are draconian.” Among them: Allowing Quebec companies to adopt variable voting rights that could increase the longer shares are held (the aim being to keep the influence […]

According to a study made public by the Institute for Governance (IGOPP), Canadian airports, which are public assets with a quasi-monopolistic position in their respective markets should be subjected to an independent review process of their decisions concerning major investments and tariff increases. Ever since Ottawa’s decision to transfer the management of airport facilities to […]

Dr. Yvan Allaire, Executive Chair of the Institute for Governance (IGOPP) and Chair of the Global Agenda Council on the Role of Business- World Economic Forum, has prepared this context paper on the Role of Business which have been presented at the 2014 Davos summit. According to Dr. Allaire, the long-term success and survival of a business […]

Any business is a risky endeavour with an uncertain life expectancy. It has been, and should remain, a driver of innovation, a creator of wealth, a harbinger of economic freedom. The core mission of a profit-driven enterprise is not to fulfil some philanthropic duty. But neither is it solely to maximize short-term shareholder value. The […]

[…] “Professor Yvan Allaire, chair of the board of directors of the Institute for Governance of Private and Public Organizations (IGOPP), an initiative of HEC Montréal and Concordia University, objects to CEOs receiving such large payments when a firm is sold. If it’s a negotiated sale, he believes CEOs with golden parachutes will be more […]

“The Institute for the Governance of Private and Public Organizations (IGOPP) announced today the release of their most recent policy paper on executive compensation, entitled “Pay for Value: Cutting the Gordian Knot of Executive Compensation”. The policy paper, prepared by Professor Yvan Allaire for the working group on compensation of IGOPP, noted that, “We are […]