BCI Responsible Investing Newsletter


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bcIMC RESPONSIBLE INVESTING NEWSLETTER ISSUE 3 | SEPTEMBER 2014 ENVIRONMENTAL | SOCIAL | GOVERNANCE INVESTING RESPONSIBLY FOR RESULTS bcIMC believes that executive compensation practices are strongly linked to a company's long-term success. As a long-term investor, we seek to invest in well-managed companies that will be successful over time. How a company rewards its top employees provides insight into how well that company's interests are aligned with our long-term perspective. Our primary focus is on pay for performance – basing an executive's overall compensation on specific measurable incentives that motivate and reward improved long-term performance while discouraging undue risk taking. bcIMC owns both public and privately held companies and we expect to have an opportunity to provide input into executive compensation practices. With private investments, our views are communicated privately and, where appropriate, at the board level. With public investments, we focus on say on pay – the practice of regularly providing shareholders with an advisory vote at annual meetings on the compensation of a company's five most highly compensated executives. In order to understand a company's approach to executive compensation, we need clear and complete disclosure by that company. We expect the companies we invest in to communicate the details of their executive compensation packages, how they developed them, and how they assess performance. We want to clearly see how executive compensation packages reflect the achievement of long-term strategic goals – both financial and non-financial. Incentives should reward executive management for superior performance and achieving meaningful financial and operational goals. bcIMC supports transparent, reasonable, appropriately structured executive compensation packages that reward performance over the long term. Our Corporate Governance Principles and Proxy Voting Guidelines, developed with input from our clients and available on our website, outlines our views. As of June 2014, 120 TSX-listed companies have adopted say-on-pay policies, according to Institutional Shareholders Services Inc. Topic: Executive Compensation

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