GGA’s Seventh Annual CEO Pay for Performance Survey with Globe and Mail

by | Jun 13, 2017 | Executive Compensation, Governance, Research, Survey

GGA and the Globe and Mail partnered once again to present our seventh annual ranking of CEO Compensation for the top 100 largest public companies in Canada’s S&P/TSX composite index.

Full results here.

There’s more behind the final tally. The compensation of CEOs is made up of various components. GGA and the Globe and Mail analysed the compensation for the top 100 CEOs in Canada and broke it down by pay, share ownership, untapped wealth, cash bonus and equity grants.

You can view our findings here.

Our top 100 CEO Compensation ranking shows that equity grants have become a major reason why CEO pay is climbing in Canada. The Globe and Mail’s Janet Mcfarland examines the reaction from major shareholders, who are increasingly growing frustrated with the way companies are offering share units as a major part of CEO pay.

Full analysis here.

And there is more. Paul Gryglewicz in a recent BNN interview, discussed our top 100 CEO Compensation study, including key insights for shareholders, and what boards should consider when developing a CEO compensation package in today’s business environment.

Full interview here.

Paul Gryglewicz Talks About Valeant’s Governance and More on BNN

by | Mar 29, 2017 | Executive Compensation, Governance, Media

Former Valeant CEO Michael Pearson is suing the drug-maker for three million shares and US$180,000 in consulting fees he says he’s owed.

In an interview, yesterday, on BNN, Paul Gryglewicz, Senior Partner, Global Governance Advisors expressed his views on the issue. Mr. Gryglewicz alluded to the fact that the compensation package for Pearson was high-risk high-reward, and deviated from typical market practices by front-loading multiple years worth of long-term incentive grants into one large grant at the start of the employment contract. This practice appears to have continued with Valent’s current CEO, Joseph Papa.

Full interview

Paul Gryglewicz’s Take on Outgoing Rogers CEO Compensation: Globe and Mail

by | Mar 21, 2017 | Canada, Executive Compensation, Governance, Media

Toronto-based Rogers Communications Inc. paid outgoing CEO, Guy Laurence, a total of $42.6-million over three years.

In an interaction with The Globe and Mail, Paul Gryglewicz, Senior Partner, Global Governance Advisors, explained, “What we see highlighted here is the cost of turning over your Chief Executive is substantial to the shareholder.” However, he added that at just shy of three years, Mr. Laurence’s tenure with the company is in line with the median range of about three or four years for many Canadian CEOs.

One somewhat unique feature of Mr. Laurence’s separation package, is the structure for his remaining stock options yet to vest. Mr. Gryglewicz noted that it is a shareholder-friendly move to provide for a continuation period – rather than accelerating the vesting period and allowing him to exercise the options immediately – because it means that whatever value Mr. Laurence receives for his options will be tied to the performance of the company’s shares, which is in part attributable to decisions he made when he was still at the company.

Read Full Story Here

Paul Gryglewicz Shares Insights with BNN on CSX Corp.’s New CEO’s Compensation

by | Mar 8, 2017 | Executive Compensation, Governance, Media

Florida-based CSX Corporation, the third-largest rail company in the United States, has brought Hunter Harrison in as CEO. Certain aspects of Mr. Harrison’s pay package are being put to a shareholder vote, by the board.

Paul Gryglewicz, Senior Partner, Global Governance Advisors in a recent interview with BNN shared his views on corporate governance, including the fairness of putting the decision to shareholders and whether this could set a precedent.

“Reputation-wise, I don’t think it was a solid move on Hunter Harrison’s part to make this claim to say that if you (shareholders) don’t vote in favour of this $84-million (USD) and special tax indemnity, I am walking away,” he said.

Speaking to the potential payout from the 9 million options granted to Mr. Harrison that are not up for a shareholder vote, Paul indicates:

“If he repeats his performance at CP and improves the stock price 3 times again… he is going to be on a realizable income basis earning close to $900 million before tax.” That said, Paul also noted that the stock option package will be worth nothing if the current share price drops over Mr. Harrison’s tenure, making it more of a “hit or miss” plan than has been provided at CSX in recent years.

Watch full interview here.

GGA’s Second Annual Pay for Performance Survey With The Calgary Herald

by | Jun 16, 2015 | Executive Compensation, Governance, Media, Survey

GGA’s second annual pay for performance survey for the Calgary Herald, looking at executive pay among the top 5 earners in Calgary’s Top 100 companies, is now out.

As GGA’s Managing Partner for Western Canada Arden Dalik said in her op ed this year, “What a difference a year makes. This year, the ‘C’ in C-suite could stand for ‘cut, control and contain’ at most Calgary companies.”

The results we report paint a nuanced picture of how the energy sector is adapting to the rapid changes in market value for the price of oil.

You can read the full summary and view our online graphics with the Herald here.

You can read Arden’s op ed here.

You can also read Herald Business Reporter Dan Healing’s piece on this year’s survey here.

GGA’s Paul Gryglewicz on Compensation Programs and Shareholder Interests for the Financial Post

by | May 14, 2015 | Executive Compensation, Governance, Media

Paul Gryglewicz, GGA’s Managing Partner for Central and Eastern Canada, has provided his perspective on the emerging complexities in executive compensation, with the interests of proxy advisory firms and investors with different expectations playing their roles in recent high profile Say on Pay votes.

You can read the full piece in the Financial Post here: Financial Post Op Ed .