Below are key takeaways from ISS’ recently released 2023 Proxy Season Review – Canada. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.
- Compensation: There was a slight decline in average support levels for say-on-pay resolutions from 92 percent to 91 percent while the number of failing MSOP votes increased on a year-over-year basis from three to four. The size and number of outsized equity grants to CEOs declined from 2022.
- Climate: An increasing number of shareholder proposals targeting climate matters at large issuers as Canada continues to make progress on its 2030 Emissions Reduction Plan.
- Shareholder Proposals: The overall number of shareholder proposals on ballot (or withdrawn) declined modestly from the 2022 high. E&S-related proposals continue to constitute an overwhelming majority of shareholder proposals being voted on.
- M&A: Transaction volumes continue to remain well below long-run average; macroeconomic uncertainty and interest rate environment could offer potential explanations.
- Regulatory: Canadian companies could be required to provide diversity disclosure beyond gender.
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By: Karl Bossi, Jessica Wang, Anqi Xu, Shehrbano Khan, Elsa Oliveros, Rishima Kathuria, Nicholas Stiege, John Vizikas
