Shareholders supported Canadian pay practices in 2024, but rebelled at a few companies

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The average approval percentage for advisory votes on executive compensation – also known as say on pay – was 92.14 per cent, the highest level since 2020, study says

Open Text CEO and CTO Mark Barrenechea speaks at the Open Government Partnership Global Summit in Ottawa on May 29, 2019.Shareholders gave the multimillion-dollar pay packages at Canadian companies their highest approval rates in years in 2024, but a handful of companies still flunked the test.

Open Text’s shareholder vote, which was held in September because of the company’s June 30 fiscal year end, was its third consecutive fail. The company received a 29.52-per-cent result in 2023 and a 44.95-per-cent result in 2022. ISS said that while the company has engaged with its shareholders and made some positive changes to its practices, “the CEO pay-for-performance misalignment continues to exist.”

ISS, which recommended a “no” vote, said there was a misalignment between pay and performance at First Majestic. It said CEO Keith Neumeyer’s pay increased about 20 per cent in 2023 and appeared to be above the median of the company’s peer group.

 

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