The company believes that its compensation objectives and approach to executive compensation appropriately align the interests of management with the long-term interests of shareholders. Beginning in 2012, Brookfield has asked shareholders to cast an advisory vote on the company’s approach to executive compensation on an annual basis (a “Say on Pay” resolution).
Although an annual vote by shareholders on our compensation practices is not mandatory in Canada, we believe it is an essential part of good corporate governance and enhances shareholder engagement. Because the Say on Pay resolution is an advisory vote, the results are not binding upon the company’s Board of Directors. However, the Board and the Management Resources and Compensation Committee of the Board will take the results of the vote into account when considering future compensation policies, procedures and decisions.
As shown below, since the introduction of this initiative support from shareholders on the company’s approach to executive compensation has been strong.
Historical Say on Pay Vote Results (Class A Shareholders)