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TORONTO, July 23, 2009 – A new publication by the Canadian Institute of Chartered Accountants (CICA) is designed to help boards of directors, particularly Human Resources and Compensation Committees, navigate through today’s unsettled economy. The Director Alert is titled: “Human Resource and Compensation Issues during the Financial Crisis – Questions for Directors to Ask”. The easy-to-read Alert highlights key topics and questions for corporate directors to consider in addressing the implications of the economic downturn on their compensation and human resource programs. “The financial crisis presents Human Resources and Compensation Committees with new challenges and has increased scrutiny of their work,” said Lisa Slipp of Mercer, who authored the document. “While risks and challenges abound, there are also opportunities to be seized. The publication offers questions that are intended to be a catalyst for useful dialogue among directors, and between directors and management.” There are key areas in which committee members can help their company address today’s economic situation and set the stage for future growth. These include: - Assessing the effectiveness of the total compensation program in motivating top executives to drive company performance
- Understanding and adjusting for the risks that incentive plans may encourage
- Reviewing the company’s talent management strategy to strengthen the leadership team
- Engaging with shareholders regarding compensation practices and decisions
“Committee governance processes and procedures are currently the subject of close scrutiny,” said Peter W. Roberts, FCA, a member of the CICA’s Risk Management and Governance Board. “Now is the time to review them against best practices.” The publication addresses specific areas which directors should review in light of the current economic conditions, including: - Executive pay levels
- Equity compensation
- Talent management
- Pay for performance
- Say on pay
- Pensions
The Director Alert is being issued by the CICA’s Risk Management and Governance Board and can be downloaded (www.rmgb.ca). It can also be found found on a special CICA site dedicated to the global financial crisis (www.cica.ca/financialcrisis). The Canadian Institute of Chartered Accountants (CICA), together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately 75,000 CAs and 12,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA). – 30 – For more information or to arrange an interview, contact:
Tobin Lambie, Manager, Media
CICA
(416) 204-3228
tobin.lambie@cica.ca
www.cica.ca
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