Canada’s nine largest financial services companies have reached an agreement to give shareholders a vote next year on the same resolution approving the firms’ compensation policies for top executives.

The rare show of co-operation among the largest banks and insurers comes as they are preparing to give shareholders their first vote on executive compensation, a practice known as “say on pay.”

“We thought it was best for all our shareholders if we had a common approach, so that everyone would be on a level playing field,” said Deborah Alexander, general counsel at Bank of Nova Scotia.

“And I think we achieved something in this country that hasn’t been achieved anywhere else, in terms of a common approach that everyone feels is appropriate.”

While U.S. lawmakers are expected to pass legislation this year making say on pay mandatory for U.S. firms, Canada’s largest companies are championing a voluntary approach to compensation reform and are working together to ensure a standardized process for the first votes next year. Read the rest of this entry »