Description: Shareholders are beginning to flex a bit more muscle in Canada when it comes to executive compensation. In short, a recent survey of shareholder voting at some of Canada’s largest companies shows that voters may be aligning executive pay with return to shareholders.

Source: Globe and Mail.com

Date: September 7, 2014, last updated September 8, 2014

Link: http://www.theglobeandmail.com/report-on-business/careers/say-on-pay-votes-increasingly-tied-to-performance/article20463157/

Questions for Discussion:

1) Why do you think Canadian shareholders are becoming more active in their votes linking executive compensation to results?

2) What does this trend say about the future of corporate governance in Canada?

3) Considering our understanding of accounting theory, what does this article tell us about the notions of how information asymmetry can be addressed by designing effective executive compensation?