New Executive Compensation Disclosure Rules In Effect For 2012

Heading into the proxy reporting season it is important to pay close and early attention to the new amendments to the executive compensation disclosure rules. The changes will not only affect annual disclosures, but will also require careful advance consideration to plan for those disclosures. The changes (the "Amendments") introduced by the Canadian Securities Administrators (the "CSA") apply to public issuers with financial years ending on or after October 31, 2011 and are in significant measure parallel to changes recently adopted in the United States. The Amendments will require issuers to consider matters such as the composition of compensation committees, the role(s) of compensation advisors, and compensation frameworks as a whole in order to identify and assess any risks inherent in compensation arrangements.