Changes Finalized to Executive Compensation Disclosure Requirements for 2012 Proxy Season
Davis LLP Securities & Corporate Finance Bulletin
October 28, 2011
The Canadian Securities Administrators (CSA) have finalized changes to the executive compensation disclosure requirements and these changes will apply to reporting issuers with respect to financial years ending on or after October 31, 2011. These amended requirements will therefore be in place for the 2012 proxy season.
The final changes announced by the CSA are generally consistent with the original CSA proposals that were published in November, 2010 and reflect changes put forward by the U.S. Securities and Exchange Commission for reporting companies in the United States. They also reflect the CSA’s targeted compliance reviews of executive compensation disclosure.
The new substantive changes to the existing Canadian executive compensation disclosure requirements include the following:
These amendments to the executive compensation disclosure rules and the resulting consequential amendments to the applicable disclosure forms for executive compensation and corporate governance disclosure will result in most reporting issuers having to carefully review and update their disclosure in order to ensure compliance with the new requirements.
If you have any questions concerning these changes, please contact the author or your usual lawyer at Davis LLP.