TORONTO, April 16 (Reuters) - Manulife Financial Corp said on Thursday it plans to accept a shareholder vote next year on how much it should pay top executives, following the lead of other top banks and corporations.
Toronto-based Manulife said it would adopt a non-binding 'advisory note,' on its executive compensation policy starting at its annual meeting in 2010.
In doing so, Canada's top insurer joins Canada's Big Six banks and responds to a national campaign to give shareholders a bigger say in how much top executives take home.
'Manulife Financial Corporation today announced that it will provide shareholders with a non-binding, advisory vote,' the company said in a statement.
The company's board had originally recommended against the measure, also called a 'say on pay' vote.
'Since the release of Manulife's proxy circular we have seen the Canadian Coalition for Good Governance come out in favor of 'say on pay', and have also heard from many shareholders who now support the measure, so the board decided to respond,' said Manulife Chairwoman Gail Cook-Bennett.
The movement for executive compensation to be based on performance and not entitlement is gaining momentum in Canada. Non-binding advisory votes are expected to spread further as shareholders work to block CEOs from pocketing millions even as the global credit crisis wiped out company profits.
Advisory votes have been approved by shareholders of Royal Bank of Canada, Canadian Imperial Bank of Commerce , Bank of Montreal and Bank of Nova Scotia .
Toronto-Dominion Bank and National Bank of Canada pre-empted similar votes by agreeing to go ahead with advisory votes.
In March, Potash Corp of Saskatchewan Inc, the world's top fertilizer producer, agreed to an advisory vote, pre-empting a May 7 shareholder vote.
(Reporting by Pav Jordan; additional reporting by Jennifer Kwan; editing by Rob Wilson) Keywords: MANULIFE/COMPENSATION (pav.jordan@thomsonreuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Toronto-based Manulife said it would adopt a non-binding 'advisory note,' on its executive compensation policy starting at its annual meeting in 2010.
In doing so, Canada's top insurer joins Canada's Big Six banks and responds to a national campaign to give shareholders a bigger say in how much top executives take home.
'Manulife Financial Corporation today announced that it will provide shareholders with a non-binding, advisory vote,' the company said in a statement.
The company's board had originally recommended against the measure, also called a 'say on pay' vote.
'Since the release of Manulife's proxy circular we have seen the Canadian Coalition for Good Governance come out in favor of 'say on pay', and have also heard from many shareholders who now support the measure, so the board decided to respond,' said Manulife Chairwoman Gail Cook-Bennett.
The movement for executive compensation to be based on performance and not entitlement is gaining momentum in Canada. Non-binding advisory votes are expected to spread further as shareholders work to block CEOs from pocketing millions even as the global credit crisis wiped out company profits.
Advisory votes have been approved by shareholders of Royal Bank of Canada, Canadian Imperial Bank of Commerce , Bank of Montreal and Bank of Nova Scotia .
Toronto-Dominion Bank and National Bank of Canada pre-empted similar votes by agreeing to go ahead with advisory votes.
In March, Potash Corp of Saskatchewan Inc, the world's top fertilizer producer, agreed to an advisory vote, pre-empting a May 7 shareholder vote.
(Reporting by Pav Jordan; additional reporting by Jennifer Kwan; editing by Rob Wilson) Keywords: MANULIFE/COMPENSATION (pav.jordan@thomsonreuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.