Canadian investors call for disclosure of executive stock options

27 May 2010

Institutional investors in Canada have urged regulators to restore a particular disclosure requirement for the executive remuneration reports of large companies.

The Canadian Coalition for Good Governance (CCGG) wants firms to publish details on how much their top executives earn from exercising stock options, the Globe and Mail reports.

Investors argue that such information makes it easier to track how much directors earn in real terms over a protracted period of time.

"We think that is an important piece of information that boards should be looking at themselves and they should be disclosing to investors," CCGG executive director Stephen Griggs told the newspaper.

The requirement disappeared last year with the advent of new disclosure rules, in which the regulatory focus applies only to compensation decisions made in the year the options were awarded.

Mr Griggs admitted the disclosure of executive compensation is a "complex issue", but said regulators should seek ways to make shareholder proxy reports more accurate.

Founded in 2003, the CCGG claims to manage a collective C$1.4 trillion (£916 billion) across its 41 members.