Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Board Games methodology: Corporations Add to ...

14. b) Does the company provide details of the specific target amounts that have to be achieved in each area? Two marks if all target specifics are given, one mark if targets are given but all specifics are not provided. Zero if no target details are provided.

14. c) Does the company explain the outcome of what actually happened with the performance goals and how the outcome affected the CEO's bonus? One mark if yes, zero if no.

15. Is the CEO's bonus affected by performance relative to a peer group of similar companies? That means the bonus is affected by the company's comparative performance and not just on improvements in absolute terms. Two marks if yes, zero if no.

16. Are there performance hurdles for stock options or share units, beyond simply requiring the share price to rise over time? One mark if yes, zero if no.

17. Does the company disclose the total value of the CEO's accumulated shares, DSUs or other equity holdings? (The company must provide the value, and not just number of units held.) Two marks if yes, zero if no.

18. Does the company disclose the total cost of compensation to the top executive team as a percentage of the total profit or total shareholder return for the year? One mark if yes, zero if no.


19. b) Does the company have a majority voting policy, asking directors to resign if they do not receive a majority of votes in support? Three marks if yes, zero if no.

19. c) Does the company give shareholders an advisory vote on executive compensation (known as say-on-pay)? Two marks if yes, zero if no.

20. Does the company disclose it has a provision to "claw back" bonus payments to the CEO if wrongdoing is discovered late? One mark if yes, zero if no.

21. Does the company have a holding period for shares after a CEO leaves the company to ensure there is a performance "tail" to the CEO's work? This is an incentive to make good long-term decisions prior to departure. One mark if yes, zero if no.




Single page

Follow on Twitter: @JMcFarlandGlobe


Next Story

In the know

Most popular videos »


More from The Globe and Mail

Most popular