Executive Compensation And Shareholder Activism

Executive compensation has been a hot button issue as of late. Not only has executive compensation come under increased scrutiny from politicians, regulators and the public at large, it is an issue that is also top-of-mind for shareholders, analysts and proxy advisory firms. For example, the Financial Post published an article earlier this year entitled "Canadian shareholders increasingly aggressive on 'say-on-pay'", which reports that institutional investors and the public are taking an increasingly hard-nosed and critical approach to evaluating corporate compensation decisions.

Executive compensation can be a flashpoint between a company and its shareholders, and it is thus critical that companies consider the agenda and viewpoints of all stakeholders, including activist investors, as they structure and review executive compensation plans. A recent post by explores these same issues.