APG Asset Management Compensation guidelines.

APG has recently published its Compensation guidelines introducing –as they say- a buy-side perspective on the matter.

We refer to this document (1) in this post, as we consider this a very valuable initiative and a very insightful view of what investors really think an adequate Pay Policy needs to be.

The first clue to their approach appears when they state that value creation for shareholders is the added economic value in excess of the cost of capital. So compensation should in their view incentive both an efficient asset use and an efficient capital allocation and capital growth process.

Their guidelines refer to:

1. Pay structure, and
2. Performance drivers

Pay Structure

20 Questions to be asked by directors about strategy, by the Canadian Institute of Chartered Accountants

The CICA published in 2012 a third version of their “20 Questions Directors Should Ask about Strategy”, that they first released in 2003. This is just one among different reports of the kind, their “20 Questions series”, which they provide to enhance the directors effectiveness and education.

 

Strategy is one of these areas where directors need to be more focused than ever in the XXI century, as many new factors have appeared, (many of them correctly named after the word “fast”: globalization, evolving regulation, technology dominance, etc,).

 

The 20 questions are structured under certain areas: (I) allocation of responsibilities, strategy design and implementation. We will briefly follow each of them.