Positive Momentum in TSX60 Say on Pay Votes

A Preliminary Look at 2024 Trends

This year, shareholders of TSX60 issuers¹ have once again shown overwhelming support for executive pay, with an uptick in Say on Pay approval results.

Key Insights

Overall Increases

• The average approval from issuers to date rose from 91.1% in 2023 to 92.7% in 2024.
• 80% of issuers (n=33) received more than 90% of votes in favour, with the remaining 20% (n=8) receiving between 70% and 90% approval.
• Of the 33 issuers above 90%, 4 were below 90% last year.
• There have been no failed votes to date in 2024 versus 1 failed vote among these issuers in 2023 (2 failed votes in total in 2023).

Sector Trends

• Financials: Increased from 93.0% in 2023 to 94.8% in 2024.
• Energy: Decreased from 95.4% in 2023 to 94.6% in 2024.
• Materials: Notable improvement from 83.9% in 2023 to 91.1% in 2024, largely driven by Agnico Eagle Mines, who surged to 96.0% from a failed Say on Pay vote last year.

¹ The findings presented herein are based on data from 41 TSX60 issuers, where both 2023 and 2024 voting results are available as of June 4, 2024, enabling apples-to-apples year-over-year comparisons. As additional voting results are released, Laulima will continue to update the analysis to provide more comprehensive and current insights.

Notable Changes

Agnico Eagle Mines (+70.9%)

• Conducted shareholder outreach following 2023 vote results.
• Eliminated special one-time bonuses that were paid in addition to the annual Short-Term Incentive Plan.
• Transitioned to having a non-executive board chair.
• CEO pay reset (base pay reduction, STIP cap reduction, fewer fixed RSUs / PSUs, and elimination of Stock Options) to align with evolving best practices and feedback from certain proxy advisory firms.
• Increased emphasis on PSUs with elimination of Stock Options.
• Increased emphasis on pre-determined goals for STIP to reduce the use of discretion.
• Strengthening of the company's Recoupment Policy to expressly comply with U.S. securities laws.

Manulife (+15.1%)

• Conducted shareholder outreach following 2023 vote results.
• Enhanced transparency of measuring individual performance in the Short-Term Incentive Plan by establishing a multiplier.
• Returning to 3-year PSU targets as opposed to annual performance targets over the 3-year vesting period.

FirstService (+10.2%)

Gildan (-20.7%)

First Quantum (-10.6%)

Effective shareholder outreach has demonstrated to be pivotal in building trust and fostering a collaborative relationship with shareholders.

Stay tuned for more on TSX60 executive compensation trends. More detailed findings will be shared soon!

For more information, contact us at info@laulimaconsulting.com.

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