References (7)



What Does the Market Say About Say on Pay? A Look at the Canadian Bank Experience

Kim Trottier

Simon Fraser University

May 13, 2011

This paper explores the share price reaction to a recent news announcement that Canadian banks were adopting say-on-pay, a policy that gives shareholders an annual non-binding vote on executive compensation. Using event study methodology, the effect of adopting this new policy is explored and found to be associated with a significant increase in share price. This result suggests that giving shareholders a voice on executive compensation is expected to generate economic benefits, which adds to the paucity of knowledge currently available to shareholders and legislators as they consider the consequences of say-on-pay.

Number of Pages in PDF File: 12

Keywords: Corporate Governance, Executive Compensation, Event Study, Canada, Agency Theory

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Date posted: October 26, 2011  

Suggested Citation

Trottier, Kim, What Does the Market Say About Say on Pay? A Look at the Canadian Bank Experience (May 13, 2011). Available at SSRN: http://ssrn.com/abstract=1840673 or http://dx.doi.org/10.2139/ssrn.1840673

Contact Information

Kim Trottier (Contact Author)
Simon Fraser University ( email )
8888 University Drive
Burnaby, British Columbia V5A 1S6
HOME PAGE: http://business.sfu.ca/profiles/KimTrottier
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References:  7

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