CALGARY — Canadian Pacific Railway (TSX:CP) CEO Keith Creel says a 71 per cent vote in favour of his company’s approach to executive compensation isn’t good enough, but predicts it will improve next year.
CP Rail’s executive pay plan was voted down in 2016 in a so-called “say-on-pay” vote, but shareholders passed a similar motion at this year’s annual general meeting in Calgary on Wednesday. Such votes are non-binding, but can send a powerful message of investor dissatisfaction.
Creel says last year’s loss was related to compensation practises under his predecessor, Hunter Harrison, who resigned in January.
He says shareholders who voted against the motion this year are likely voting based on those past policies.
The company made changes earlier this year to cut back on executive perks and place greater emphasis on safety and operating income in determining bonuses.
Creel says CP Rail’s pay levels are being set at a level required to attract and retain top employees.