Advisory firms urge CI Financial shareholders to vote against the company’s executive pay practices

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Two advisory firms argued CI Financial Corp has failed to respond to investor concerns about aligning pay with long-term performance for executives

vote against the company’s compensation practices at its annual meeting next week, arguing it has failed to respond to investor concerns about aligning pay with long-term performance for executives.

CI failed to get majority approval for compensation program from CI shareholders in 2021, receiving just 38.1 per cent of the votes cast. It was one of just six Toronto Stock Exchange-listed companies in 2021 to fail to get 50-per-cent support. According to Globe research, CI chief executive Kurt MacAlpine saw one of the largest jumps in total compensation last year for CEOs in the Canadian wealth-management sector.

However, ISS and Glass Lewis took issue with the scorecard and with other elements of the company’s pay plans for all executives. Meanwhile, Glass Lewis expressed concerns about CI’s internal pay inequity, noting that Mr. MacAlpine, who joined the company in 2019, was paid more than four times the average compensation received by the other executives whose compensation is disclosed in the proxy circular.

 

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