Topic Results: Stakeholders

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 […]

December 7, 2017

How a proposed new ‘right’ for shareholders could badly damage corporate boards

There is a frenzied rush to get/give a new ‘right” to shareholders, the right to put up their own nominees for board membership. Boards of directors, so goes a dominant opinion, are not to be fully trusted to pick the right kind of people as directors or to shift the membership swiftly as circumstances change, […]

November 21, 2017

Canada’s ‘questionable’ CEO pay system needs overhaul: Think tank

Current executive compensation practices are making Canadian CEOs rich, but at the expense of a strong corporate culture and the long-term interests of shareholders, according to a new report from the Institute for Governance of Private and Public Organizations (IGOPP). “Mutual trust, loyalty, the sharing of objectives and pride in the organization, the sense of […]

November 21, 2017

IGOPP Calls for Changes to CEO Compensation

Today, the Institute for Governance of Private and Public Organisations (IGOPP) released its policy paper entitled Executive Compensation: Cutting the Gordian Knot.  The compensation of CEOs remains a contentious issue and, for the past twenty years, has drawn sharp and unrelenting criticism, much of it justified.  At issue has been the fact that the ratio […]

November 21, 2017

Executive compensation

The median total CEO compensation has more than doubled between 1998 and 2007, followed by a 17.7% correction in 2008 and an uptick afterwards. Since 2010 however, CEO compensation has stabilized at about $8 million. The chief executive officers of the big six Canadian banks are obviously better paid with a total compensation of $10.5 […]

November 21, 2017

Companies urged to rethink executive pay practices

Companies should give CEOs share units less often and stop paying them with stock options to motivate better long-term performance and minimize the role of luck in compensation payouts, a new report argues. The Quebec-based Institute for Governance of Private and Public Organizations has proposed revamping the model for executive pay in Canada, saying companies […]

November 21, 2017

Here are the pay perks you’d enjoy if you were a CEO in Canada

The typical Canadian CEO makes $8 million a year, 140 times the average private-sector salary, according to new research by the Montreal-based Institute for Governance of Private and Public Organizations (IGOPP). In the banking sector, that ratio is even higher, with the median CEO compensation at $10.5 million. Things, though, weren’t always so. In 1998, […]

August 31, 2017

U.K. reforms bring workers’ voices to corporate boards

The United Kingdom is stiffening the rules large companies must follow in an effort to rein in executive pay and bolster the input of ordinary employees in the running of their firms. On Tuesday, the government outlined a series of changes. Large publicly-traded companies will have to report annually the ratio of CEO pay to […]

June 12, 2017

On becoming an «activist board»… In the age of activist shareholders

After some 15 years of tweaking and polishing the theory and practice of “good” governance, perfectly independent board members remain surprise-prone, estranged from the goings-on in the company, partially informed and lacking the wherewithal to challenge management. No doubt that the legitimacy and credibility of boards have suffered as a result. In the current age, […]

January 11, 2017

Corporate Governance: The New Paradigm

[ … ] a growing body of academic research has confirmed that short-term financial activists are a major contributor to systemic short-termism in managing businesses and investments. The notion that activist attacks increase, rather than undermine, long-term value creation has been resoundingly discredited. Economists Yvan Allaire and François Dauphin, for example, demonstrated in a series […]

November 18, 2016

Can America’s Companies Survive America’s Most Aggressive Investors?

“WILMINGTON, Del.—Ron Ozer was thrilled to get a job with DuPont, the two-centuries-old chemical company, when he finished his Ph.D. from Cornell in 1990. It was the place to go for young, ambitious chemists; it offered salary and benefits so generous that some people called it “Uncle Dupey.” For 26 years, he invented things for […]

November 18, 2016

IGOPP’s Executive Chair quoted in The Atlantic Magazine with regard to Hedge Fund Activism

IGOPP’s Executive Chair, Dr. Yvan Allaire’s study on Hedge funds Activism Hedge Fund Activism: Preliminary Results and Some New Empirical Evidence, is quoted in a recent article entitled “Can America’s Companies Survive America’s Most Aggressive Investors?” published in the Atlantic Magazine. This article discusses activist investors who are increasingly gaining control of legacy corporations, forcing them to trim payrolls […]

November 3, 2016

Reality check: Will new foreign ownership rules make flights in Canada cheaper?

One such fee is the landing and parking fee charged to airlines – a fee often passed down to consumers. And flights landing in Canada pay some of the highest fees in the world, according to a 2014 report from the Institute for Governance of Private and Public Organizations entitled The Governance of Canadian Airports. […]

September 29, 2016

IGOPP is publishing a research study on corporate head offices located in Quebec

More than six months after the fact, the sale of Rona to Lowe’s, a U.S. corporation, continues to generate political controversy. This raises the question: how many large Quebec corporations are vulnerable to a foreign takeover with the consequent loss, sooner or later, of the strategic functions associated with their head offices. Such a takeover […]

September 29, 2016

What’s the risk of losing a significant number of corporate head offices now located in Quebec?

More than six months after the fact, the sale of Rona to Lowe’s, a U.S. corporation, continues to generate political controversy. Lowe’s’ first attempt to acquire Rona in 2012 turned more or less hostile in nature, sparking a strong reaction from the Quebec government at the time. The government ordered the financial institutions under its […]