Canadian Securities Administrators (CSA) on Friday proposed changes to improve executive compensation disclosure requirements for investors.
The move comes after a 2009 CSA targeted review of compensation disclosure that assessed compliance with form 51-102F6, which is the form a company adheres to for executive compensation reports.
The CSA is the council for securities regulators across Canada.
The proposed changes include:
The CSA said the U.S. Securities and Exchange Commission’s new compensation and corporate governance disclosure requirements were one of the driving forces behind the proposed changes.
“Improved disclosure helps investors understand how boards of directors make decisions about executive compensation, and also helps them determine whether management’s incentives are aligned with shareholder interests,” said CSA chair Jean St-Gelais.
The proposed changes are available on CSA member websites and open to a stakeholder comment period until February 17, 2011.