Laurel Hill Canada Releases 5th Annual Trends in Corporate Governance Report

• Shareholder Activism has taken on greater prominence, scale and momentum in 2019.
• ESG and Executive Compensation continue to dominate governance headlines.

TORONTO, NEW YORK, Oct. 29, 2019 /CNW/ - Laurel Hill Advisory Group is pleased to release our fifth annual Trends in Corporate Governance report (Click here for a copy of the full report). Our report identifies the trends and developments in the complex governance and activism landscape and provides valuable insights and takeaways. We aim to help Canadian issuers avoid and mitigate risks to their organizations while providing information to initiate, manage, and prepare for conversations with boards, executives, and shareholders.

In this year's report, we focus on the evolution of certain trends and their impact on the vote, including:

• Shareholder Activism: While the volume of board activism has dropped off this year, we have seen proportionally more activism in the mining sector and at large-cap issuers. Transactional activism hit unprecedented levels, including against some of the country's largest and most prominent deals, while the number of shareholder proposals has doubled.  
• Environmental, Social and Governance: Nearly 40% of this year's shareholder proposals have addressed ESG concerns around climate change, corporate social responsibility and sustainability. We also observed increased demand from investors for ESG disclosure, as they continue to incorporate ESG considerations into their investment models, and we have seen activist hedge funds launch dedicated ESG funds.
• Executive Compensation & Say on Pay: While the adoption of say-on-pay votes continues to rise, and will continue to with the new CBCA say-on-pay requirement, shareholders have taken a critical view of compensation this year, driving average support levels down and pushing more votes below the 80% approval level.                 

"Activism took many unique forms in 2019 and, despite a decrease in board battles, continues to grow in prominence, scale and momentum", said David Salmon, President of Laurel Hill Canada. "We were routinely reminded directors will be held accountable for ESG, executive compensation and the stewardship of the organization. The reality is shareholders increasingly consider these factors as a key measure of good corporate health". 

Laurel Hill welcomes your feedback and we look forward to the opportunity to speak with you as you prepare for 2020.

About Laurel Hill Advisory Group

Laurel Hill Advisory Group is North America's leading independent, cross-border shareholder communications and advisory firm. In addition to our industry-leading proxy solicitation, information agent, depositary, escrow and escheatment services, we provide year-round governance, compensation, and strategic advisory services. Our customized solutions, delivered by the industry's most experienced, multi-disciplinary and collaborative team, help our clients develop and maintain market-leading governance, shareholder engagement, and activism preparedness. We are regularly engaged on the most high profile, complex and contentious governance, M&A and activism situations. Our cross-border operations allow us to effectively reach shareholders regardless of their location – Canada, US and globally. We deliver results. For more information, please visit us at www.laurelhill.com.

SOURCE Laurel Hill Advisory Group

David Salmon, President, Laurel Hill Advisory Group, [email protected], [phone]

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