Getting executive compensation right is important for ensuring that the people driving your organization’s strategic objectives are performing at their best. We examined Canada’s top 60 companies on the Toronto Stock Exchange—the TSX60—for insights into how they track and reward executive performance. You can review the data in our webinar Executive Compensation – What Can We Learn from the TSX60? These insights are important factors to consider as you start your executive compensation planning for 2020.
Are you using the right metrics? The TSX60 companies are taking a broader view of performance, revisiting their executive incentive plans and looking beyond single metrics like Total Shareholder Return (TSR). There is new emphasis on operating in a socially responsible manner, increasing the use of Environmental, Social and Governance (ESG) metrics to measure performance.
Are you benchmarking against a credible, Canadian peer group? The composition of the Canadian market makes it challenging to find peer groups to use as benchmarks for your company. However, we’ve observed that comparison against the US market is often not the right fit for the majority of Canadian firms. Getting advisory support can be a better way to proceed with evaluating your situation.
Are you prepared for enhanced scrutiny? Companies must now deliver on a higher set of expectations from the extended shareholder community. Most Canadian companies have eliminated problematic practices, so now the emphasis is on addressing other issues and advancing diversity initiatives. This is a signal for Canadian organizations of all sizes to take action.
Download Mercer’s new whitepaper to read our comprehensive analysis of the TSX60 trends, why they matter, and the potential impact on your executive compensation and incentive plans. Mercer’s compensation consulting services can help you align your executive compensation with market best practices and to key success drivers.
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