The Canadian Securities Administrators (CSA) outlines specific disclosures about executive compensation for public companies. The following webpage

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The Canadian Securities Administrators (CSA) outlines specific disclosures about executive compensation for public companies. The following webpage contains information about CSA executive compensation disclosure regulations: www.securities-administrators.ca/aboutcsa.aspx?id=978.


Required:

A. Discuss why the CSA requires special disclosures for executive compensation.

B. Conduct research to locate the annual CEO compensation report contained in a business publication such as The Globe and Mail. Pick a company in the report, and answer the following questions:

1. What types of information does the report provide?

2. What rating was given for the CEO compensation of your company? How was the rating determined?

C. For the company you selected in Part B, conduct research to identify the company’s disclosures about executive compensation. Answer the following questions:

1. Discuss the ease with which you located the executive compensation information.

2. The CSA requires companies to “provide enough information and explanation to allow a reader to understand the disclosure elsewhere in this form.” Discuss whether the information you found met this requirement.

3. Summarize the major types of pay received by the company’s CEO.

4. Does the company appear to use performance-based pay in compensating its top executives? Explain.

D. Describe uncertainties about whether the CEO pay for your company was reasonable.

E. Draw your own conclusion about whether the CEO pay for your company was reasonable. Explain.

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Cost Management Measuring, Monitoring and Motivating Performance

ISBN: 978-1119185697

3rd Canadian edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook

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