Delay in exec comp disclosure changes

This note was put out by our friends at Blakes yesterday. It would appear that the Canadian Securities Administrators got some good feedback on the proposed changes to public disclosure of compensation for senior executives. Remember when the idea was controversial? Former Premier Bob Rae was accused of inciting class warfare by requiring salary disclosure, but it turned out that an unintended consequence was that the CEOs were soon able to look across the street at the pay packages of their confreres and point out to their boards that “if he’s worth that with their performance, I’ve got to be worth more.”

“By John Tuzyk
SEPTEMBER 2007
Securities Law

The Canadian Securities Administrators (CSA) have published a Notice indicating that, after review and consideration of the comments received on proposed Form 51-102F6 – Statement of Executive Compensation, reflecting proposed changes to executive compensation disclosure for Canadian public companies, they have decided to revise the proposal and delay implementation.

The CSA have indicated in CSA Notice 51-325 Status of Proposed Repeal and Substitution of Form 51-102F6 Statement of Executive Compensation, dated August 31, 2007, that they will publish an amended version of proposed Form 51-102F6 for comment later this year and consequently will not implement the proposed changes to the Form for issuers with a December 31, 2007 year end as originally proposed. The CSA also indicated they will not implement
an amended Form 51-102F6 to apply to issuers with fiscal years ending before June 30, 2008.

The CSA previously published for comment proposed changes to Form 51-102F6 – Statement of Executive Compensation on March 29, 2007. The comment period expired on June 30, 2007. The CSA indicated that they have received and reviewed 41 comment letters on the proposed changes.”

MRM