TORONTO, March 3 /CNW/ - Canada's Chartered Accountants (CAs) are taking
action to help corporate board directors prepare for upcoming changes relating
to executive compensation disclosure.
The CA profession has prepared a special document titled: "Director
Alert: Executive Compensation Disclosure - Questions directors should ask" to
help corporate directors address proposed new rules recently released by the
Canadian Securities Administrators (CSA) for how Canadian public companies
disclose information about compensation paid to executives.
"The questions raised in the Director Alert are intended to provide
insight and stimulate discussion and understanding," said Dave Pollard,
Vice-President, Knowledge Development with the CICA. "The publication helps
companies take a proactive approach in preparing for the disclosure
requirements regarding executive compensation outlined in the CSA proposal."
The new compensation rules will impact every Canadian public company and
dramatically increase the volume and complexity of information provided to the
market. It is important that companies begin preparing now, since the CSA has
proposed an effective date for the new rules of December 31, 2008 (for proxy
disclosures prepared in the spring of 2009).
"Boards should review the CSA proposals as a basis for making an initial
assessment of the implications on financial reporting systems, disclosure
controls and procedures and then identify the required action steps," said
Alert author, John Hughes, "The exercise can be a springboard for a meaningful
and valuable internal reassessment of a company's compensation strategy and
For companies with very simple compensation structures this may not be
too onerous. For others, however, it will involve a lot of additional work,
planning and thinking. The new disclosures are expected to make the details of
executive compensation more transparent than they have been in the past. They
will likely be of interest to a variety of stakeholders including investors.
"Director Alert: Executive Compensation Disclosure - Questions directors
should ask" is being issued by the CICA's Risk Management and Governance Board
and can be downloaded at www.rmgb.ca.
The Canadian Institute of Chartered Accountants (CICA), together with the
provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants,
represents a membership of approximately 72,000 CAs and 10,000 students in
Canada and Bermuda. The CICA conducts research into current business issues
and supports the setting of accounting, auditing and assurance standards for
business, not-for-profit organizations and government. It issues guidance on
control and governance, publishes professional literature, develops continuing
education programs and represents the CA profession nationally and
internationally. CICA is a founding member of the International Federation of
Accountants (IFAC) and the Global Accounting Alliance (GAA).
For further information:
For further information: or to arrange an interview, contact: Tobin
Lambie, Media Manager, CICA, (416) 204-3228, firstname.lastname@example.org