Thought Capital

The 2023 edition of our Director Pulse Survey captures prevailing sentiment on corporate performance, board priorities, expected 2023 incentive payouts and action, ESG in compensation, human capital challenges, and board effectiveness. 

With year-end decisions approaching,  Compensation Committees may find themselves contemplating discretionary adjustments to their companies’ incentive outcomes. In the absence of a “one-size-fits-all” solution, this insightful article empowers directors with a strategic framework to navigate this challenging process.

ISS and Glass Lewis have released their policy guideline changes for 2024, including new perspectives on executive share ownership guidelines and clawback policies. Check out our summary of the updates on compensation and governance-related topics for the Canadian market.

Hugessen Consulting is making an important addition to its leadership by appointing Marie-Lise Gauthier as the Partner, Quebec Leader, entrusted with the leadership of our Montreal office. Since the founding of the firm in 2006, Hugessen has enjoyed a strong presence in Quebec; the appointment of Marie-Lise Gauthier highlights our commitment to our valued clients and friends in this market while strengthening the capabilities of the firm.

Marie-Lise brings 20+ years in corporate finance and governance, excelling in global mergers, acquisitions, and strategic planning. Notable roles include Vice-President Corporate Development at Celestica, Global Head of M&A at Bombardier, and senior finance positions at Bell Canada Enterprises. Holding an INSEAD MBA and a B.Sc. in Industrial Engineering, Marie-Lise's expertise informs board decisions, ensuring strategic success.

In the latest edition of our 'Insights in Action' video series, Marie-Lise Gautier discusses her extensive background in corporate development and as a director. She emphasizes the challenges faced by board members, especially in sensitive areas like executive compensation. The goal is to leverage Hugessen's expertise and Marie-Lise's executive experience to enhance client satisfaction and performance.

Boards across Canada understand that organizational culture is a key role in driving performance. As a result, culture is appearing more frequently on-board agendas. However, many boards are grappling with how to truly understand culture, how to oversee it from the boardroom, and how to incentivize culture change that drives performance

Shareholders expect Board’s to self-reflect, take actions for improvement, and report transparently on their governance practices. The largest companies, perhaps subject to heightened scrutiny, are at the forefront of adopting and exemplifying these practices. Yet, the evolution in Board Effectiveness practices should not solely be motivated by shareholder expectations; rather, it should stem from the intrinsic motivation of Boards to excel and enhance the value they provide. 

In today's fast-paced business world, a well-defined Compensation Philosophy is the cornerstone of any successful talent management program.

As part of our annual review of the 2023 TSX60 issuer proxy circulars, we have analyzed the shareholder proposals submitted to these issuers to better understand how shareholder expectations / concerns have evolved over the years.

Board evaluations are not evaluations at all, or at least they shouldn’t feel like one.