Minerva data shows major Canadian banks set to vote on remuneration shareholder resolutions

April 4th, 2024

Several major shareholder resolutions are set to be held in the coming weeks, including numerous Canadian banks voting on remuneration requests.

The Royal Bank of Canada (RBC) shareholders will vote on a remuneration resolution to request the board review executive compensation levels in relation to the entire workforce on 11 April, according to data from the analyses of companies conducted by Minerva Analytics.

The bank’s shareholders will also vote on a series of resolutions to increase its reporting requirements on 11 April.

Shareholders will vote on environmental resolutions, including to request that the bank report on its exposure to oil and gas divestment and loans granted in support of a circular economy, and that it disclose its clean energy supply financing ratio.

Shareholders can also vote to request the bank hold an annual advisor vote on environmental and climate objectives.

Similarly, the Bank of Montreal will vote to approve a shareholder proposal regarding the public disclosure of executive compensation in relation to the entire workforce on 16 April.

Toronto-Dominion Bank shareholders will vote on 18 April to request that the board review the bank’s executive compensation levels in relation to the workforce and publicly disclose the CEO-compensation-to-median-employee-pay-ratio annually.

The bank’s shareholders will also vote to request that the Board consider introducing a new approach to incentive compensation.

Additionally, shareholders of BNY Mellon, which managed over $2 trillion, will vote on two significant resolutions on 9 April. They will get a say on a resolution to request the board to prepare a report to shareholders on lobbying and an anti-ESG resolution to request it report on the risks of politicised de-banking.

Lobbying refers to lawful attempts to influence the actions, policies, or decisions of government officials.

Politicised de-banking is the practice of banks closing customers’ bank accounts because of their political views. The issue entered mainstream discussions in the UK when Brexit Party leader Nigel Farage claimed his account at private bank Coutts, part of NatWest, was closed due to his political beliefs.

Management at both firms have recommended shareholders vote against all the resolutions.

Shareholder voting rights could be under threat in the US after oil company ExxonMobil filed to sue investors over an ESG vote at its AGM in January.

Minerva Analytic’s data collection is part of our governance watch service for clients. We track all resolutions, voting results, and other data points as part of our standard voting service in our in-house award-winning platform.