Description: Three major pension funds are ready to throw out the board of Barrick Gold because they are concerned about the company’s executive pay plan. One of the three pension funds also expressed concerns about pay practices at CIBC. Although these funds are only minority shareholders, their public statements may raise important points regarding concerns on executive pay.
Source: Globeandmail.com
Date: April 17, 2015
Discussion Points:
1) How do you think the strategy of these three pension funds will influence the debate around executive pay?
2) If you were a member of the compensation committee of the board at Barrick or CIBC, how would you respond to this public criticism?
3) What are some of the key points accounting theory tells us about how to structure executive compensation plans?
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