Board games 2004

Table: Shareholding and compensation, worth 19 marks out of 100

10. a) Are directors required to own shares or share units? (Stock options don’t count.)
Four marks if the requirement is equal to at least three times the annual retainer paid to directors.
Two marks if there is a requirement, but it is lower than three times retainer.
Zero marks if there is no requirement.

10. b) How many shares to directors own?
Four marks maximum, but minus one mark for each director who owns less than three times the annual retainer. (In 2003, ROB marked whether directors owned 2,000 shares or more, but decided to tie the requirement to retainer in 2004 to recognize the differences in companies’ share prices, and in the compensation differences among companies.)
If a director has been on the board less than one year, the ownership requirement does not apply.
If a director has been on the board one to two years, the required ownership level is reduced to one times the retainer.
If the base retainer is over $100,000 a year (usually when companies have introduced flat fee director compensation), the ownership requirement is 1.5 times retainer.

11. a) Is the CEO required to own shares? (Stock options don’t count.)
Two marks if there is a requirement, or if the CEO is the company’s controlling shareholder.
Zero marks if there is no requirement.

11. b) Does the CEO own shares?
Three marks if the CEO owns shares at least equal to his or her base cash salary. (In 2003, ROB marked whether CEOs owned at least 50,000 shares, but decided to tie the requirement to base salary to recognize differences in companies’ share prices as well as compensation differences among companies.)
Two marks if the CEO owns shares equal to 40 per cent of his or her base salary.
Zero marks if the CEO owns shares worth less than 40 per cent of his or her base salary.

12. Does the company give loans to its senior executives?
Two marks if there are no loans or if the company is a bank and makes loans at consumer rates. (In 2003, companies received four marks for no loans, but the maximum score was reduced because loans have become less commonly used.)
One mark if the loans carry interest and are under $500,000 in total.
Zero marks if loans are interest free or over $500,000 in total.

13. How well does the company disclose the compensation policies it applies when deciding CEO bonuses?
Four marks if the company explains in detail how it awards the CEO’s bonus, including details of financial targets that must be met to receive a full bonus, as well as how much these targets count toward the bonus (compared with other personal performance factors) and whether the criteria were met in the previous financial year.
Three marks if the company explains its benchmarks generally and their weightings, but not the precise financial targets.
Two marks if the company lists a number of benchmarks, but provides no details on how they are applied.
One mark if there is only a cursory mention of benchmarks.
Zero marks if there are no clear benchmarks identified or if the company simply says bonuses are based on “corporate performance.”

Company 10a 10b 11a 11b 12 13 Compensation
                                          Maximum mark 4 4 2 3 2 4 19
Manulife Financial 4 4 2 3 2 4 19
CIBC 4 4 2 3 2 4 19
Toromont Industries 4 4 2 3 2 4 19
TELUS Corporation 4 4 2 3 2 4 19
Bank of Montreal 4 4 2 3 2 3 18
Finning International 4 4 2 3 2 3 18
Suncor Energy 4 4 2 3 2 3 18
Canadian National 4 4 2 3 2 3 18
Royal Bank of Canada 4 4 2 3 2 3 18
Agrium Inc. 4 4 2 3 2 3 18
MacDonald, Dettwiler 4 4 2 3 2 3 18
MDS Inc. 4 4 2 3 2 3 18
Nexen Inc. 4 4 2 3 2 3 18
Inco Limited 4 4 2 3 2 3 18
Nova Chemicals 4 4 2 3 2 3 18
Torstar Corporation 4 4 2 3 2 3 18
Enbridge Inc. 4 4 2 3 2 2 17
Toronto-Dominion Bank 4 3 2 3 2 3 17
Canadian Pacific Railway 4 3 2 3 2 3 17
Terasen Inc. 4 3 2 3 2 3 17
Petro-Canada 4 4 2 3 2 2 17
TransCanada Corp. 4 4 2 3 2 2 17
BCE Inc. 4 4 2 3 2 2 17
Vincor International Inc. 4 4 2 3 2 2 17
Zarlink Semiconductor 4 4 2 3 2 2 17
CAE Inc. 4 4 2 3 2 2 17
CFM Corporation 4 2 2 3 2 4 17
Esprit Exploration Ltd. 4 4 2 3 2 2 17
Thomson Corporation 4 4 2 3 2 2 17
Encana Corporation 4 4 2 3 2 2 17
Canadian Natural 4 4 2 3 2 2 17
George Weston Limited 4 4 2 3 2 2 17
WestJet Airlines Ltd. 2 4 2 3 2 4 17
FirstService Corporation 4 4 2 3 2 2 17
Bank of Nova Scotia 4 3 2 3 2 2 16
Placer Dome Inc. 4 4 0 3 2 3 16
Cameco Corporation 4 4 0 3 2 3 16
Industrial Alliance 4 3 2 3 1 3 16
SNC-Lavalin Group 4 4 2 3 2 1 16
CP Ships Limited 4 2 2 3 2 3 16
Aliant Inc. 4 3 2 3 2 2 16
Abitibi-Consolidated Inc. 4 2 2 3 2 3 16
TSX Group Inc. 4 2 2 3 2 3 16
ONEX Corp. 4 4 2 3 2 1 16
ZENON Environmental  4 4 2 3 2 1 16
ATI Technologies Inc. 4 4 0 3 2 3 16
Canadian Western Bank 2 4 2 3 2 3 16
Loblaw Companies 4 3 2 3 2 2 16
Cognos Incorporated 4 4 2 3 2 1 16
Molson Inc. 4 4 2 3 1 2 16
Sun Life Financial Inc. 4 4 2 3 0 2 15
National Bank of Canada 2 4 2 3 2 2 15
Methanex Corporation 2 4 2 3 2 2 15
ATS Automation 4 4 0 3 2 2 15
IPSCO Inc. 4 3 0 3 2 3 15
Cambior Inc. 4 4 0 3 2 2 15
Imperial Oil Limited 4 4 0 3 2 2 15
Cogeco Cable Inc. 2 2 2 3 2 4 15
Norske Skog Canada 4 4 0 2 2 3 15
Brascan Corporation 4 0 2 3 2 4 15
Empire Company Limited 4 4 2 3 0 2 15
Penn West Petroleum 4 4 2 3 2 0 15
Rogers Communications 4 3 2 3 2 1 15
Fairfax Financial Holdings 0 4 2 3 2 4 15
Canfor Corporation 4 4 2 0 2 2 14
Rothmans Inc. 2 3 2 3 2 2 14
DOFASCO INC.  4 4 0 3 2 1 14
Fairmont Hotels 2 2 2 3 2 3 14
Kinross Gold  4 1 2 3 2 2 14
Kingsway Financial 4 4 0 3 2 1 14
Manitoba Telecom 4 4 0 2 2 2 14
Potash Corporation 4 4 0 3 2 1 14
Saputo Inc. 4 2 2 3 2 1 14
Maple Leaf Foods Inc. 4 1 2 3 2 2 14
West Fraser Timber 4 3 2 3 0 2 14
CI Fund Management Inc. 2 4 2 3 2 1 14
Teck Cominco Ltd. 2 4 0 3 2 3 14
Alimentation Couche-Tard 4 3 2 3 2 0 14
Four Seasons Hotels Inc. 4 2 2 3 2 1 14
Quebecor Inc. 4 2 2 3 2 1 14
Quebecor World Inc. 4 1 2 3 2 2 14
Royal Group 2 2 2 3 2 3 14
Martinrea International 4 4 2 3 0 1 14
Alliance Atlantis 4 3 2 3 2 0 14
Tesma International Inc. 2 4 2 3 2 1 14
TransAlta Corp. 4 2 0 3 2 2 13
Domtar Inc. 4 4 0 3 0 2 13
Agnico-Eagle Mines 4 3 0 3 2 1 13
Emera Incorporated 4 1 2 3 2 1 13
Fortis Inc. 4 3 2 3 0 1 13
BCE Emergis 4 3 2 0 2 2 13
Creo Inc. 4 2 2 3 2 0 13
Shell Canada Ltd. 4 4 0 0 2 3 13
Vasogen Inc. 4 3 0 3 2 1 13
Western Oil Sands Inc. 4 2 0 3 2 2 13
Ensign Resource 4 2 2 3 2 0 13
Talisman Energy 2 3 0 3 2 3 13
Sobeys Inc. 4 3 0 3 0 3 13
Metro Inc. 4 0 2 3 2 2 13
Shaw Communications 4 0 2 3 2 2 13
Intertape Polymer Group 4 4 2 3 0 0 13
Dundee Bancorp Inc. 4 4 2 3 0 0 13
Power Financial 4 3 0 3 2 1 13
CORUS Entertainment Inc. 4 4 0 3 2 0 13
Hudson's Bay Company 4 3 0 3 1 1 12
Alcan Inc. 4 1 0 3 2 2 12
Husky Injection 2 3 2 3 2 0 12
Inmet Mining Corporation 0 4 2 3 0 3 12
Intrawest Corporation 4 4 0 3 0 1 12
Noranda Inc. 4 1 0 3 2 2 12
Brookfield Properties 4 0 0 3 2 3 12
CCL Industries 4 0 2 3 2 1 12
CHC Helicopter 0 2 2 3 2 3 12
International Forest 2 4 0 0 2 4 12
Falconbridge Limited 4 0 0 3 2 3 12
Jean Coutu Group 0 4 2 3 2 1 12
Dorel Industries Inc. 4 3 2 3 0 0 12
Southwestern Resources 0 3 2 3 2 2 12
Cequel Energy Inc. 0 4 0 3 2 3 12
Power Corporation 4 0 2 3 2 1 12
Niko Resources Ltd. 0 4 0 3 2 3 12
Ballard Power 4 0 2 2 2 1 11
Masonite International 0 4 2 3 2 0 11
Goldcorp Inc. 0 3 2 3 2 1 11
Compton Petroleum 0 4 0 3 2 2 11
Wescast Industries Inc. 0 4 0 3 2 2 11
Cott Corporation 2 1 2 3 2 1 11
Home Capital Group Inc. 0 4 2 3 2 0 11
Canadian Tire 2 3 2 3 0 1 11
CanWest Global 4 0 2 3 2 0 11
Transcontinental Inc. 0 3 2 3 2 1 11
Extendicare Inc. 4 4 0 3 0 0 11
CGI Group Inc. 0 3 2 3 2 1 11
Magna International Inc. 4 1 2 3 0 1 11
TLC Vision Corporation 0 4 0 3 2 2 11
Paramount Resources 0 3 2 3 2 1 11
CoolBrands International 0 3 2 3 2 1 11
Gennum Corporation 0 4 0 3 0 3 10
Norbord Inc. 4 0 0 3 0 3 10
Barrick Gold Corporation 4 0 2 2 0 2 10
Geac Computer 2 1 0 3 2 2 10
Meridian Gold Inc. 0 3 0 3 2 2 10
Bombardier Inc. 4 2 0 0 2 2 10
Precision Drilling 0 1 0 3 2 4 10
Linamar Corporation 0 2 2 3 2 1 10
Cascades Inc. 0 2 2 3 2 1 10
Research In Motion  0 2 2 3 2 1 10
Astral Media Inc. 2 0 2 3 2 1 10
Ivanhoe Energy Inc. 0 3 0 3 2 2 10
Trican Well Service Ltd. 0 4 0 3 2 1 10
ATCO Ltd. 0 1 2 3 2 2 10
Agricore United 2 1 0 2 2 2 9
Golden Star Resources 0 4 0 3 2 0 9
Sears Canada Inc. 4 3 0 0 2 0 9
Angiotech 0 3 0 3 2 1 9
RONA Inc. 0 4 0 3 2 0 9
Pan American Silver 0 2 0 3 2 2 9
SouthernEra Resources 0 4 0 3 2 0 9
Tesco Corp. 0 2 0 3 2 2 9
Minefinders Corporation 0 4 0 3 2 0 9
Telesystem International 0 2 0 3 2 2 9
Canadian Utilities Limited 0 0 2 3 2 2 9
Gildan Activewear Inc. 0 3 0 3 0 2 8
Patheon Inc. 0 2 0 3 2 1 8
Tembec Inc. 0 0 2 3 2 1 8
GSI Lumonics Inc. 0 3 0 0 2 3 8
Glamis Gold Ltd. 0 3 0 3 2 0 8
ID Biomedical 0 3 0 3 2 0 8
Aber Diamond 0 2 0 3 2 1 8
Mega Bloks Inc. 0 3 0 3 2 0 8
First Quantum Minerals 0 3 0 3 2 0 8
Biovail Corporation 0 3 2 3 0 0 8
Ivanhoe Mines Ltd 0 1 2 3 2 0 8
Forzani Group Ltd., The 0 3 0 3 2 0 8
Celestica Inc. 0 4 0 3 0 1 8
ShawCor Ltd. 0 1 0 3 2 2 8
AGF Management Ltd. 0 0 2 3 2 1 8
MI Developments Inc. 0 1 2 3 2 0 8
Shoppers Drug Mart Corp. 0 3 0 3 0 2 8
Tundra Semiconductor 0 3 0 3 2 0 8
FNX Mining Company Inc. 0 2 0 3 2 1 8
LionOre Mining 0 3 0 3 2 0 8
Nevsun Resources Ltd. 0 3 0 3 2 0 8
IGM Financial Inc 0 2 0 3 2 1 8
Rogers Wireless 4 2 0 0 2 0 8
Aastra Technologies 0 3 2 3 0 0 8
Wheaton River Minerals 0 2 0 3 2 1 8
First Calgary Petroleums 0 3 0 3 2 0 8
Sino-Forest Corporation 0 3 0 3 2 0 8
Laurentian Bank 2 1 0 0 0 4 7
Miramar Mining 0 3 0 2 2 0 7
Sierra Wireless 0 2 0 3 2 0 7
Iamgold Corp. 0 3 0 3 0 1 7
PetroKazakhstan Inc. 0 2 0 3 2 0 7
ConjuChem Inc. 0 2 0 3 2 0 7
Van Houtte Inc. 0 1 0 3 2 1 7
Great-West Lifeco 0 0 0 3 2 2 7
Neurochem Inc. 0 0 2 3 2 0 7
Hummingbird Ltd. 0 0 2 3 2 0 7
Stratos Global 2 0 2 0 2 0 6
Eldorado Gold 0 1 0 3 2 0 6
Open Text Corporation 0 0 0 3 2 1 6
St. Lawrence Cement 0 0 0 3 0 3 6
Enerflex Systems Ltd. 0 1 0 3 2 0 6
Cinram International Inc. 0 1 0 3 2 0 6
Rio Narcea Gold Mines 0 0 0 3 2 1 6
QLT Inc. 0 1 0 0 2 2 5
Axcan Pharma Inc. 0 0 0 3 2 0 5
Aur Resources Inc. 0 0 0 3 2 0 5
Husky Energy Inc. 0 0 0 2 2 1 5
Bennett Environmental 0 2 0 0 2 1 5
Isotechnika Inc. 0 1 0 3 1 0 5
Bema Gold Corporation 0 1 0 3 0 1 5
Northgate Minerals 0 0 0 2 2 0 4
Sherritt International Corp. 0 0 0 0 0 3 3
Gabriel Resources Ltd 0 0 0 0 2 1 3
TVA Group Inc. 0 0 0 0 2 1 3
AEterna Zentaris Inc. 0 0 0 0 2 1 3
n/a=not applicable
dash=was not ranked
5-year return from Bloomberg, as of Aug. 31/04