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CCCA_V6No3_ProxyFights-FIN_CCCA_V6No3_ProxyFights 9/18/12 12:57 PM Page 24 Cover and think about what the board and its committees have done in such as our executive compensation practices, and then bolster dis- the past year. This sounds very obvious, but a lot of issuers sell closure in those areas. We are also responsive to ‘hot-button’ issues themselves short and don’t disclose the really good things that in the field of governance and consider the latest recommendations their boards and committees are doing.” He stresses that this is and guidelines of proxy advisory firms and governance groups part and parcel of the changing nature of preparing proxy circu- [such as Glass Lewis & Co. and Institutional Shareholder Services lars. “When I was younger, I went through a period in which cir- Inc. (ISS).]” culars were fairly static documents and all you had to do was As for Enbridge, the company takes some pretty innovative update the numbers and make minor changes. Now, that’s no steps to improve its disclosure documents and to keep sharehold- longer how it works. The document is evolving and you need to ers informed. “One year, we retained the services of a writer who stay on top of how things are changing.” looks at companies’ disclosure documents and rewrites them in Putting so much work into its proxy circular has paid off for plain English. She tore it apart and started over,” Love says, admit- MTS Allstream: it won the first annual CCGG Governance Gavel ting that this was very valuable, but isn’t a step the firm would Award for “best disclosure of governance practices and approach take every year. Still, Enbridge consistently communicates to executive compensation by a small or mid-sized issuer.” through its website and social media because “the written paper Meanwhile, CN and Enbridge both have won the CCGG’s can be pretty dated by the time it gets out.” Governance Gavel Award for “best disclosure of board governance Being prepared, maintaining consistent and important commu- practices and director qualifications”; CN took the prize in 2011 nication with shareholders and preparing thorough, timely and and 2009 while Enbridge won it in 2006. Both firms emphasize easy-to-read disclosure documents are key to preventing and keeping their documents shareholder-friendly and including the dealing with potential shareholder activism. “Shareholders are information that shareholders want to know about most. becoming aware of the different alternatives to get companies to “We make every effort to describe our governance practices and listen to their issues,” Love says. “So, companies have to be pre- compensation philosophies in plain English,” says Circelli. “With pared. They need to have more people in legal, public affairs, as respect to the presentation of information, we attempt to commu- well as outside counsel and advisers involved. They need to spend nicate information in as easily digestible manner as possible, using more time and money to adequately respond to concerns.” graphs, tables and charts. We strive to anticipate and identify areas where shareholders would be interested in additional disclosure, Pablo Fuchs is a freelance writer based in Toronto. La préparation prime l’action interactions avec leurs actionnaires. « Vous services d’une rédactrice pour réviser les Or, il n’est pas inhabituel de voir des con- devez [les] connaitre, insiste le collègue documents de divulgation de la compagnie e seillers juridiques d’entreprise s’engager de M Soliman chez Norton Rose, et les présenter en anglais plus accessible. dans de telles courses aux procurations Orestes Pasparakis. Ce seront les premiers Elle les a complètement réécrits », relate sans savoir précisément ce qui les attend, à manifester de la frustration et à prendre Alison Love, vice-présidente et secrétaire note Brad Allen, vice-président senior de conscience d’une activité inhabituelle. » corporative chez Enbridge. la firme de spécialisée en communications Des compagnies comme MTS Alstream Être bien préparé, maintenir une com- avec les actionnaires, Laurel Hill Advisory et Canadien National se font un point munication constante et cohérente avec les Group. « La question la plus fréquente que d’honneur d’entretenir de telles relations actionnaires et rédiger de documents com- les avocats-conseils me posent quand la à longueur d’année. Une approche plus plets, faciles à lire et ponctuels sont des élé- situation se présente est : “Qu’est-ce qui formelle passe par les circulaires de sollici- ments-clés pour gérer le risque d’activisme va arriver ensuite?” », dit-il. tation de procurations. Chaque année, la des actionnaires. « Les actionnaires sont de « Vous devriez avoir en main un guide Coalition canadienne pour la bonne gou- plus en plus conscients des différentes e qui établit la manière de gérer une telle vernance diffuse un document sur les options qui s’offrent à eux, note M Love. situation : qui sont les experts que vous bonnes pratiques en la matière — dont la Les compagnies doivent être prêtes. Elles devez contacter, et comment et quand communication « en langage clair » d’élé- doivent avoir plus de gens impliqués au vous devez réunir le groupe », recom- ments comme « les pratiques de gouver- plan juridique et aux affaires publiques, mande le PDG de Kingsdale, Wesley Hall. nance, les activités du conseil [ou] des pro- ainsi que des conseillers extérieurs. Elles Les compagnies devraient aussi miser grammes de compensation des dirigeants ». doivent investir plus de temps et d’argent à sur de meilleures communications et « Une année, nous avons retenu les répondre à leurs préoccupations. » 24 CCCA Canadian Corporate Counsel Association FALL 2012