Friday, February 12, 2010

Say on pay gains ground in oil and gas sector

Meritas Mutual Funds, assisted by the Shareholder Association for Research and Education (SHARE), has withdrawn “say on pay” shareholder resolutions at Enbridge, EnCana and Suncor.

The three companies have agreed to establish an advisory vote on executive compensation, starting in 2011.

"Offering our shareholders a "say on pay" reflects Enbridge's commitment to shareholder engagement and to continuously improving our governance practices in view of emerging trends and best practices," said David Arledge, chair of the board of Enbridge Inc., in a statement.

EnCana’s board has approved a plan to include a non-binding advisory vote by shareholders on executive compensation at its annual general meeting planned for April 2011. “This vote will give EnCana shareholders an opportunity to provide feedback to the board of directors on the company’s approach to executive compensation,” the company said in a news release.

Suncor did not issue a formal public statement but a spokesman told the Calgary Herald that the company will announce a similar compensation plan next year.

Meritas filed say on pay resolutions at 12 companies last year. The Canadian Coalition for Good Governance expects as many as 35 public companies to sign up. The coalition published its say on pay policy last month.

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