Busy Isn't a Strategy

The governance landscape heading into 2026 is evolving faster than most planning cycles are designed for. Boards are navigating shifting geopolitical dynamics, rapid technological change, and rising shareholder expectations, all while being called on to demonstrate greater foresight and the courage to move beyond business-as-usual. This article highlights Laulima’s view on key trends shaping executive compensation and governance practices in 2026, paired with guiding questions and considerations to help boards prioritize what matters most amid ongoing uncertainty and accelerated change.

In today’s human resources landscape, balancing a pay for performance philosophy with the imperative to ensure equitable compensation can seem challenging. In our view, differentiating pay based on performance is a key element of fairness. With the right guardrails in place, organizations can implement a performance-based pay structure that does not conflict with internal pay equity objectives or external legislative requirements.

Good governance is fundamental to building trust with shareholders and ensuring alignment between executive decision-making and long-term company performance. Meaningful and effective share ownership guidelines are one key mechanism to reinforce such alignment. This article delves into current and emerging practices among TSX60 companies, explores proxy advisor and governance body guidelines, and summarizes Laulima’s predictions.