CALGARY - Shareholders made it known they're unhappy with rich payouts to two former executives at the Canadian Imperial Bank of Commerce's annual general meeting on Thursday.
An advisory resolution on the bank's approach to executive compensation was voted down by nearly 57 per cent of shareholders, with about 43 per cent voting in favour.
CIBC raised some eyebrows recently when it disclosed it planned to pay two retired executives a total of $25 million on top of their existing pensions, even though they no longer work for the company.
Under the "post-employment arrangements," former chief executive Gerry McCaughey will receive $16.7 million by April 2016, while former chief operating officer Richard Nesbitt will be paid $8.5 million, according to regulatory documents filed by the bank.
Thursday's vote is non-binding, but CIBC said in its proxy circular it would "consider the outcome of the vote as part of its ongoing review of executive compensation."
Outgoing chairman Charles Sirois said the vote's outcome should not be taken as "commentary to our overall approach to compensation."
CIBC Shareholders Vote Against Plan To Pay Execs $25 Million After They Left Company
and
CIBC's McCaughey And Nesbitt Keep Getting Paid After Retirement, To The Tune Of $25 Million
An advisory resolution on the bank's approach to executive compensation was voted down by nearly 57 per cent of shareholders, with about 43 per cent voting in favour.
CIBC raised some eyebrows recently when it disclosed it planned to pay two retired executives a total of $25 million on top of their existing pensions, even though they no longer work for the company.
Under the "post-employment arrangements," former chief executive Gerry McCaughey will receive $16.7 million by April 2016, while former chief operating officer Richard Nesbitt will be paid $8.5 million, according to regulatory documents filed by the bank.
Thursday's vote is non-binding, but CIBC said in its proxy circular it would "consider the outcome of the vote as part of its ongoing review of executive compensation."
Outgoing chairman Charles Sirois said the vote's outcome should not be taken as "commentary to our overall approach to compensation."
CIBC Shareholders Vote Against Plan To Pay Execs $25 Million After They Left Company
and
CIBC's McCaughey And Nesbitt Keep Getting Paid After Retirement, To The Tune Of $25 Million