With proxy access coming to Canada, issuers need to be prepared. Paul Gryglewicz, in an interaction yesterday with Financial Post, shared that this is part of the growing momentum of shareholders in demanding a say in how board and management carry out their responsibilities.
“It will continue to show up on proxy ballots, perhaps not next year but a higher probability by 2019, ” he predicted, adding that there will be voluntary acceptance and banks will be the early adopters. However, Paul doesn’t see proxy access being particularly problematic for banks.
“The onus will be on ensuring that the board has the proper level of oversight. Proxy access creates a level of democracy,” meaning that large shareholders can act if they feel the current board is not doing its job properly, added Gryglewicz.