Canada: CCGG executive compensation principles

The Canadian Coalition for Good Governance (an organisation representing the interests of institutional investors) has published for comment draft executive compensation principles. Of interest is the (perhaps surprising) position taken by the CCGG with regard to shareholder advisory votes on remuneration:

CCGG does not, for the time being, support regulatory changes to mandate advisory shareholder votes on compensation reports. CCGG and its members believe that constructive engagement with boards and compensation committees to explain the shareholders’ perspective on compensation practices and disclosure is preferable to a 'Yes' or 'No' advisory vote".