(May 12 – 17:30 ET) – Tom Gunn, chief investment officer at the Ontario Municipal Employees Investment Retirement Board, took his turn before the Senate banking committee yesterday. His remarks echo those of many shareholder activists.
Gunn, who runs the $37 billion OMERS fund, appeared before the committee to call for more shareholder accountability at corporations. He noted that revisions to Canada’s securities laws should keep in mind those underway in the U.S. and U.K. to maintain competitiveness. He suggested that some of the changes in the CBCA be reflected in the forthcoming financial services legislation
He also revived OMERS’ call for a national securities commission, noting, “some of the changes simplifying federal and provincial legislation are certainly moving in the right direction”.
And last but not least, called for the separation of the offices of chief executive officer and chairman. Gunn suggested that the idea would not be opposed by many Canadian companies. “No company wants to go first, particularly within the banking business.” Among banks he said that the combined office is treasured as a competitive advantage by some bankers. “If the office is split, it suggests that the person is not the ultimate decision maker. No banker wishes to be the first to take that stance, in that the theory is that they would be empowering someone else.”
-James Langton