Director Journal Flipbook
Director Journal A PUBLICATION OF THE INSTITUTE OF CORPORATE DIRECTORS SEPTEMBER/OCTOBER 2022 BURNED OUT Even CEOs need support to ensure their mental well-being
CONTENTS Director Journal Departments Editorial EDITOR Editor’s note Simon Avery ART DIRECTOR Managing extremes 04 Lionel Bebbington CONTRIBUTORS CEO insights Jeff Buckstein, Guy Dixon, Virginia Rahul Bhardwaj on how mental health has become a game changer 05 Galt, Josie Portillo, Serge Rivest, Barbara Smith, Samuel Tessier, Prasanthi Vasanthakumar, Shirley Won Dispatches 06 Executive Lead The great office debate, adding an element of hope for news junkies, calling all global directors, and aviation’s worst polluters Heather Wilson Senior Director, Policy and Research Issues 11 Institute of Bewildering governance Corporate Directors Directors’ dilemma Rahul Bhardwaj - President and CEO Heather Wilson on determining whether your 12 Richard Piticco - Chief administrative officer board needs a risk committee Ady Jonsohn - Vice-president, education Jan Daly Mollenhauer - Vice-president, sales, marketing and membership Directors on the move Kathryn Wakefield - Vice-president, Recent board appointments across the country 44 chapter relations Finally Content Parting shot 50 Eric Schneider - President The disappearing Arctic Abi Slone - Creative director Dana Francoz - Advertising sales [email protected] 416-726-2853 Features Building trust and confidence in Canadian ICD Fellow insights organizations is imperative. At the Institute of Corporate Directors (ICD), we believe that this Jean Houde’s public and private sector experience has helped 14 starts with the right leadership and good gover- make him a natural fit as chair of National Bank of Canada nance. Directors must lead by being informed, prepared, ethical, connected, courageous and engaged with the world. In the pages that follow, you will find thoughtful and provocative articles Cover story that explore these essential leadership qualities. Executive mental health requires the board’s attention 22 Bâtir la confiance envers les organisations can- adiennes est primordial. À l’Institut des admin- istrateurs de sociétés (IAS), nous croyons que Risk management O cela commence par un bon leadership et une LL bonne gouvernance. Les administrateurs doivent Ready for the recession 30 RTI gouverner en étant informés, préparés, intègres, O connectés, courageux et ouverts sur le monde. E P Dans les pages qui suivent, vous trouverez des Living wages I articles réfléchis et provocateurs qui explorent S ces qualités de leadership essentielles. O The great compensation divide 38 N: J O 2701 – 250 Yonge Street, Toronto, Ontario M5B 2L7 TI T: 416-593-7741 F: 416-593-0636 E: [email protected] Recommended reading TRA ISSN 2371-5634 (Print) S www.icd.ca ISSN 2371-5650 (Online) In Innovation in Real Places: Strategies for Prosperity in an 46 LLU The ICD welcomes a diversity of opinion for inclusion in Unforgiving World, author and innovation expert Dan Breznitz R I Director Journal. The contents of this publication do not necessarily reflect the opinions of the ICD, its partners, urges governments and businesses to ditch the Silicon Valley model VE its sponsors, or its advertisers. Readers are encouraged O to consider seeking professional advice and other views. of success and focus instead on regional competitive advantages C To request reprints of articles, please contact [email protected]
EDITOR’S NOTE Managing extremes Executive wellness and worker compensation require board attention MOST SENIOR EXECUTIVES manage stress as POUR LA PLUPART des cadres supérieurs, part of their jobs and are well compensated in gérer le stress fait partie du boulot et ils the process. But changes over the past few years sont bien payés pour le faire. Mais les are increasingly making these matters import- changements des dernières années en ont ant subjects for the board’s attention. That’s be- accru l’importance au point de mériter cause the mental pressures that executives face l’attention du conseil. Les pressions men- and the wealth that they enjoy compared with tales exercées sur les dirigeants sont dev- their workers have both become excessive. enues excessives. Our cover story (page 22) by the ICD’s Pras- Notre article principal (page 22), « Le anthi Vasanthakumar, “The boss is not okay,” patron ne va pas bien », de notre collègue was sparked by a recent study by Deloitte de l’IAS Prasanthi Vasanthakumar, s’ap- Canada and LifeWorks, which found that 82 puie sur un récent sondage de Deloitte per cent of senior leaders are at risk of burn- Canada et Life Works, qui a révélé que 82 out. The pandemic, as well as widespread pour cent des cadres supérieurs étaient à political and economic volatility, has leaders risque d‘épuisement professionnel. operating in overdrive. En réponse à la situation, les conseils In response, boards should be adjusting their Simon Avery devraient ajuster leurs attentes envers expectations of their CEOs, while providing Editor leurs chefs de la direction, tout en leur of- oversight with empathy and understanding. And [email protected] frant empathie et compréhension. they should also be making sure that a stressed- La situation exige que les administrateurs out CEO is not overworking the rest of the senior soient plus sensibles aux enjeux de santé management, Vasanthakumar reports. mentale et bâtissent une relation adéquate The situation requires that directors in- avec leurs chefs de la direction, pour que s’in- crease their awareness of mental health issues and build the right stalle un échange ouvert et franc sur le bien-être de l’équipe de direction. relationship with their CEOs so there can be an open and honest Dans notre article intitulé « The great compensation divide » exchange about the well-being of the leadership team, she adds. (page 38), Jeff Buckstein souligne l’incohérence chez les entreprises In our feature “The great compensation divide” (page 38), Jeff Buck- qui font la promotion de politiques progressistes sur le plan envi- stein spotlights the inconsistency among businesses that promote ronnemental, social et de gouvernance (ESG), tout en contribuant à their progressive environmental, social and governance (ESG) policies une inégalité sociale croissante. while simultaneously contributing to society’s expanding wealth gap. Les plus importants chefs de la direction au Canada gagnent pr- Canada’s top CEOs are making almost 200 times the average wage esque 200 fois le salaire moyen de leurs travailleurs et les écarts of their workers, an inequity that has steadily widened over the years de richesse se sont constamment élargis au fil des ans alors que as stock-based compensation schemes grew more generous and les régimes de rémunération fondés sur les actions ont été plus hourly wages stagnated during a long period of low inflation. généreux et que les salaires horaires ont stagné pendant une The issue isn’t even that executives are paid too much; it’s that longue période de faible inflation. they are failing to pay some of their workers enough to live on, Rog- Le problème n’est pas seulement que les hauts dirigeants sont er Martin, of the University of Toronto’s Rotman School of Manage- trop payés; c’est qu’ils ne versent pas à certains de leurs travailleurs ment, tells Buckstein. assez pour survivre, affirme Roger Martin, de la Rotman School of Given the circumstances, board members have a responsibility Management de l’Université de Toronto. to protect both the mental health of their top executives and the Dans les circonstances, les membres du conseil ont la respons- economic well-being of the lowest-paid workers, with the broader abilité de protéger à la fois la santé mentale de leurs dirigeants et le goal of ensuring the success of their organization. DJ bien-être économique de leurs travailleurs. DJ
CEO INSIGHTS Focusing on your people Boards must recognize that mental health issues are a game-changer THERE IS SURELY NO DIRECTOR in the IL N’Y A SÛREMENT aucun administrateur country today unaware of the effect the au pays qui ne soit pas conscient des effets pandemic has had on the mental health qu’a eus la pandémie sur la santé mentale and welfare of individuals, including their et le bien-être des personnes, y compris own employees. Compounding the crisis, leurs propres employés. Aggravant les ef- the health of many businesses themselves fets de la crise, la santé de plusieurs entre- are under strain, hurt by rising interest prises est compromise, frappées qu’elles rates, inflation, enhanced global political sont par les taux d’intérêt croissants, uncertainty, and demands to take action l’inflation, l’incertitude politique mondi- against climate change. ale accrue et la nécessité d’agir contre les Strong companies committed to cre- changements climatiques. ating long-term sustainable value for all Les organisations fortes engagées dans stakeholders will recognize that their la création de valeur durable à long terme greatest asset is their people and that the pour l’ensemble des parties prenantes mental health of those employees is a key reconnaîtront que leur actif le plus im- to success. For boards of directors, this Rahul Bhardwaj portant réside dans leur personnel et means that overseeing culture, strategy LL.B, ICD.D que la santé mentale de ces employés est and risk includes being attuned to the President and CEO, l’une des clés du succès. Pour les conseils well-being of staff. It means understand- The Institute of Corporate Directors d’administration, cela signifie que la sur- ing that the uncertainties we face as a veillance de la culture, des stratégies et society today are taking a toll on people’s du risque implique d’être sensibilisé au mental health and that organizations’ ex- bien-être du personnel. Il s’agit de com- pectations of their employees may need prendre que les incertitudes auxquelles to evolve. nous faisons face en tant que société affectent la santé mentale In this process, the role of board members becomes more rele- des gens et que les attentes des organisations envers leurs em- vant, and their leadership more required, than ever before. Direc- ployés doivent évoluer. tors increasingly recognize the broad impact that mental health is Dans ce contexte, le rôle des membres du conseil exige plus de having and understand that it may be unrealistic to expect employ- pertinence et de leadership. Ceux-ci doivent reconnaître l’im- ees to operate in the same way they did before the pandemic. Some- pact de la santé mentale et comprendre qu’il peut être irréal- where in the decision-making and oversight process, the needs of iste d’exiger des employés qu’ils se comportent comme avant la organizations and their employees should be linked if there is to be pandémie. Les besoins des organisations et des employés doivent Y long-term success. être étroitement liés. Many boards are now working with senior managers to be Plusieurs conseils collaborent aujourd’hui avec leurs hauts di- more sensitive and responsive to mental health issues within rigeants afin d’être plus sensibles et réceptifs aux enjeux de santé MCCONOMtheir ranks. mentale dans leurs rangs. RON A director engaged and connected with the world and who ex- Un administrateur engagé faisant preuve d’expertise, de lead- A hibits expertise, leadership, wisdom and humanity, is one most ership, de sagesse et d’humanité est plus susceptible de porter A Y B likely to handle such difficult issues in the boardroom with cour- ces enjeux avec courage au conseil. J’exhorte tous nos membres à IONSage. I urge all members to continue your engagement on these and poursuivre leur engagement envers ces enjeux au sein de l’Institut T A other issues with the Institute of Corporate Directors – through our des administrateurs de société – dans nos sections régionales, notre R T local chapters, our community of directors, and through all of our communauté d’administrateurs et dans le cadre de toutes nos oc- US L L I learning opportunities. DJ casions d’apprentissage. DJ
COMPILED BY Prasanthi Vasanthakumar Dispatches A digest for diligent directors THE OFFICE DEBATE RAGES ON Forget inflation, supply chain problems and the war in Ukraine. Younger workers disagree. These digital natives grew up building What CEOs really want to talk about is hybrid work and how much relationships online and think managers need to learn how to they hate it, Gillian Tett writes in the Financial Times. The cultural manage virtually. They also find the office conversations that anthropologist and editor moderated two debates on economics, executives hold dear a drag on productivity. where “work from home” eclipsed supply and demand. Remote Most CEOs assume they can put the kibosh on remote work is the “single biggest issue,” bemoaned one boss of a work when summer ends or if a recession strikes. But surveys Midwest industrial group. consistently show that most people now working from home Middle-aged executives want employees in the office because expect to continue doing so. of culture, logistics and economics. All the participating CEOs told Is this corporate clash just a generational divide? And who Tett that meeting in real life is important for teamwork, creativity will prevail? “It is a fascinating moment to be a corporate and people management. anthropologist and a nightmare for those CEOs,” Tett writes.
NEWS DUPED The pandemic may have slowed many of us down, but for con artists, business is booming. One elderly woman in Kelowna, B.C., lost $34,000 in a bitcoin scam, complete with a fake banking portal, two-factor authentication process, and account balance. Meanwhile, in Ottawa, a couple’s rental property was fraudulently posted on Kijiji and rented out using text messages and e-transfers. The unsuspecting “tenant” presumed the lack of in-person interaction was owing to pandemic protocols and was left $4,000 poorer, Dave Zarum reports in Pivot Magazine. CONS IN CANADA Here’s what the scams and shams of 2022 have added up to: Reports of fraud: Victims of fraud: Money lost to fraud: 45,387 28,734 $242- million Source: Canadian Anti-Fraud Centre. Data as of June 30, 2022. HT) WHEN NO NEWS IS GOOD NEWS G I K (RData from the Reuters Institute show people are increasingly quitting the news because C they find it depressing, disempowering or untrustworthy. Many consumers say O T S the problem is bias, while journalists blame a business model where bad news I / R is clickbait. But Amanda Ripley, a journalist and recovering news junkie, E YZ thinks the real problem is the sheer hopelessness of it all. In The Washington Post, she boils it down to three missing ingredients: C ANAL I hope, agency and dignity. People need hope to get up in the morning, F the feeling that they can take action, and the sense that they matter. FT), TRAFInstead, today’s news is a never-ending slideshow of doom and gloom. The New York Times’s ambitious project, “Postcards from a World H (LEon Fire,” is one example. Featuring an image of the Earth in flames, S LA the apocalyptic piece chronicled how climate change has affected P S N life in 193 countries. Ripley called it a well-intentioned effort, but U K/ not one built for humans. “I don’t know what species it would work C LI for, but it’s not one I’m familiar with,” she writes. C Y X According to David Bornstein of the Solutions Journalism Network, O R reporters believe the best way to avoid catastrophe is to keep people focused Y P on the potential for catastrophe 24/7. But with a polarized public and the HY Bbirth of fake news, a better approach is to outline problems and solutions. RAP As Ripley braces for a future of political turmoil, virus variants and climate G O T cataclysms, she has a plea for her fellow journalists: It’s time to change how we O H P tell stories. It’s time to treat readers like humans.
PASSPORT POWER If you’re looking for a smooth travel experience, passports from Japan, Singapore and South Korea are your best bets. Offering visa-free access to more than 190 countries, these Asian nations have dethroned European destinations to top the latest Henley Passport Index. In contrast, Iraq and Afghanistan have the least-coveted passports, providing entry to fewer than 30 countries without a visa. Where does Canada land? Granting hassle-free access to 185 countries, it’s tied with four other nations for the eighth spot. THE 10 MOST POWERFUL PASSPORTS OF 2022 PASSPORT RANK COUNTRY ENTRY SCORE Japan 1 193 WORK FROM THE BEACH? Singapore 2 192 For many business-leisure travellers, work is better in flip-flops. As a new subset of digital nomads, they typically work abroad for weeks or months before South Korea 2 192 T C E returning home – making those working from home J O look positively quaint. R Germany 3 190 N P As more employees look to work from anywhere they U O want for shorter periods, governments are scrambling Y N N B to figure out visa and tax regulations, Michelle O C Jamrisko, Suttinee Yuvejwattana and Claire Jiao report Spain 3 190 HT), I G in Bloomberg News. Businesses also have a new set of I headaches as they navigate compliance and corporate H (R S culture. Despite the difficulty, one business leader Finland 4 189 LA P S expects more companies will set up remote work N U / N options for trusted employees. E S For pandemic-ravaged tourism hotspots like Bali Italy 4 189 O B R and Thailand, this work-from-anywhere trend could O allow for a comeback. One Indonesian resort that FT), JAK offers large communal areas, workspaces, and the Luxembourg 4 189 opportunity to go snorkelling between Zoom meetings, EAD (LE is in high demand with working sun-seekers. However, H AD O Indonesia’s immigration and tax laws are still murky in Austria 5 188 R this area, while Thailand’s visa application process may K B be too complicated. Y MAR Thankfully, the world has many beaches. From Denmark 5 188 HY B Aruba and Brazil to Sri Lanka and Greece, more than RAP G O 24 countries have set up “digital nomad” programs that T O H welcome working travellers. Where will you go? Source: Henley Passport Index P
NEWS WANTED: New directors on S&P 500 boards with foreign work experience INTERNATIONAL EXPERIENCE 2022 2021 In 2022, half of the 395 new directors appointed to S&P 500 boards had global experience – up by 16 per cent from 2021. 50% 34% These board members may have worked abroad or originally hail from outside the United States. According to the execu- tive search firm Spencer Stuart, this significant increase sug- gests leading boards are strengthening their global outlook. Source: Spencer Stuart’s 2022 S&P 500 New Director Snapshot PRIVATE JETS, PUBLIC PROBLEM Kylie Jenner, the U.S media personality and entrepreneur, is mired in controversy again, this time for taking to the skies for a 17-minute trip to avoid a 45-minute drive. Private jets have become a must-have accessory for the rich and famous, but they belch 10 times more carbon, on average, than their commercial cousins. Amid another summer of intense heat waves, wildfires and flash floods, Twitter users were quick to brand Jenner a “climate criminal.” But as Dani Di Placido observes in Forbes, the celebrity socialite’s crimes pale in comparison to those rocket-blasting billionaires trying to get space tourism off the ground. Indeed, as Transport & Environment in Europe points out, just 1 per cent of people cause 50 per cent of global aviation emissions. But the clean transport campaign T C group has solutions that go beyond Twitter shaming. For example, proposals for new, E J O zero-emission aircraft might lead to planes more suitable for short-haul flights. R N P Despite the accelerating climate crisis, Jenner won’t be the last clueless celebrity U to hop on a private plane for a quick trip. But perhaps there is a way for the wealthy O Y N to continue their jet-setting lifestyle without drawing the ire of everyone else. N B O C PRIVATE JETS OUTPOLLUTE OTHER TRANSPORT TYPES HT), I G I H (R 1200 S LA P S N 1000 U / N E S O B R 800 O FT), JAK 600 EAD (LE 400 H O2 intensity (g/pax.km) AD C O R K B 200 Y MAR 0 HY B RAP Avg. private jet Avg. commercial jet High-end van, Avg. train (EU) G (calculation) (calculation) shared by 4 people O T O H Source: “Private jets: Can the super-rich supercharge zero-emission aviation?,” Transport & Environment (2021). P
IT’S TIME TO PRIORITIZE CLIMATE GOVERNANCE WHY NOW? Climate change is shaping a new reality, creating a diverse series of risks and opportunities. The ICD, its affiliate organization, Chapter Zero Canada, and the Climate Governance Initiative’s global network of more than 20 national and regional Chapters are committed to building and supporting climate- competent directors. Let us help prepare you to lead critical boardroom discussions on climate change. Set the foundation, build your climate competence and stay informed with our curated collection of climate governance education, events and resources. TO LEARN MORE, VISIT ICD.CA/CLIMATECHANGE Canada
ISSUES BY Simon Avery Bewildering governance Better oversight of NASA would have delivered a smoother ride back to the moon NASA’S SPACE LAUNCH SYSTEM is a marvel of human achieve- ment. It comprises the Orion capsule – which could transport as- tronauts to and from the lunar surface as soon as 2025 – as well as the most powerful rocket the United States has yet built. The great accomplishment, however, is not so much technical. Indeed, the US$23-billion SLS is a mash-up of old technology and parts. Its four main engines, for example, are repurposed from the Space Shuttle, which was designed in the 1970s and retired in 2011. Its two solid rocket boosters also derive from the shuttle. But, un- like in the past, none of the equipment on the SLS will be reusable – it will crash into the ocean as garbage. The wonder of NASA’s SLS is that it made it to the launch pad at all, given the politicized development process, the competing inter- ests at stake, the number of compromises that had to be made, and the convoluted system of oversight in place. SLS roots can be traced to NASA’s Constellation program, an- nounced in 2004 as the successor to the Space Shuttle program, that was intended to take crews to the moon and eventually Mars. But years of cost overruns led U.S. President Barack Obama to can- cel Constellation in 2010. With thousands of jobs and billions of dollars of contracts at stake, spread out across all 50 states, the Constellation program enjoyed strong support in Congress. Lawmakers responded to leadership councils to provide high-level NASA spent US$23- Obama’s decision by passing the NASA Authorization Act, direct- oversight, strategy and guidance. External billion to develop ing the agency to use old contracts from the Space Shuttle and Con- councils and advisory groups also have a its Space Launch stellation programs to create the next human spaceflight system. hand in governance, chief among them System, which will When announced in 2012, the first SLS launch was to have taken the National Space Council, led by the U.S. take astronauts to place in 2016 and costs were pegged at about US$500,000 for each vice-president. the moon using launch. Today’s estimate for the first four SLS missions – named In addition, the organization must meet engines refurbished Artemis I through Artemis IV – is US$4.1-billion each, according to various requirements set out in laws such from the retired S Space Shuttle L NASA’s Office of Inspector-General. The entire program will have as the Space Act and Federal Acquisition program. /S cost more than US$93-billion by 2025, it estimates. Streamlining Act, and Nelson himself is ITE As costs rise at NASA, private space companies such as SpaceX, directly accountable to the U.S. president Y WH Blue Origin and RocketLab are building smarter and cheaper sys- for everything from the agency’s vision and R R tems. California-based SpaceX, for example, is currently engine strategy to the implementation of policies Y TE testing a fully reusable heavy-lift vehicle called StarShip that could and performance. That’s a lot even for an H B carry massive payloads at a fraction of NASA’s costs. astronaut to navigate. DJ RAP None of these companies faces anything like the bureaucratic G O T labyrinth that defines NASA. Led by Administrator Bill Nelson, a SIMON AVERY is a freelance business O H P former astronaut and U.S. senator, the agency relies on four senior writer and editor of Director Journal.
The dilemma Q.What are the advantages and disadvantages of establishing a risk committee? Heather Wilson If a risk committee is created, it should ICD’s Senior Director, have a clear mandate about the work it will Policy and Research undertake and how it will communicate its findings to the entire board. The composition of the risk committee is also important. The board has the opportu- nity to appoint members to the committee with specialized knowledge and experi- ence. When searching for risk committee members, Harding looks for directors who have a solid understanding of risk frame- works (perhaps someone with an account- ing or internal audit background), or those who have a deep understanding of the risks IT IS UNDERSTANDABLE why risk is top of risk committee at Meridian Credit Union. faced by the organization through their mind for many boards. Aside from the glob- Once that’s been done, directors should be professional experience. al pandemic, we are faced with enormous able to assess whether those risks are being Risk identification, mitigation, and es- challenges, including a war in Europe, in- well monitored within the existing board tablishing the risk appetite are part of every flation, a possible recession, and supply committee structure. director’s role. According to Harding, the chain headaches. Alternatively, without A risk committee may enhance the risk environmental scan of risks should be made risk, there is no reward. Recognizing and oversight function of the board, make recom- available to all directors in their board pack- mitigating risk is an important part of run- mendations on the organization’s risk appe- ages. She notes that “this gives the board a ning an organization, and its elimination tite and tolerance, as well as bolster its ability sense of what is happening out there and should neither be expected nor attained. to handle compounding risks. Risk commit- what the trends are. At our board meetings, The creation of a risk committee is one tee members may also be able to delve more I can then provide more context about the strategy some organizations use to help mon- deeply into matters and consequently gain a topics we took deep dives on.” A heat map itor risks effectively. In Australia, for example, more complete understanding of the com- colour coded to show very high-level risks 40 per cent of respondents to a recent survey plexity of the organization’s risk environ- and their trend lines can also be a helpful indicated that they had a separate risk com- ment. Inadequate risk oversight at the board way of keeping the entire board informed mittee on their listed company boards. level may be the focus of litigation, says An- about the organization’s current risks. MY O N Before deciding to establish a risk com- drew Gray, a partner at Torys LLP in Toronto. An integrated approach to risk needs to O C mittee, an evaluation of the effectiveness of In the United States, for instance, Caremark be maintained, no matter the structure used C the current risk oversight program may be claims — named for a precedent-setting case for risk oversight. A risk committee may be N M O helpful. To determine whether a risk com- in the Delaware Court of Chancery — allege a useful addition if the risks facing the orga- mittee is necessary, organizations should that directors “have breached their duties by nization are not being well monitored by ex- Y AAR examine their risk registry — a chart or doc- failing to monitor company operations. Es- isting committees. No matter the structure N B O ument that identifies risks to the organiza- tablishing a risk committee allows a board to used, risk oversight is a full board responsi- TI TRA tion — to understand what their key threats fulfill its oversight role and mitigate litigation bility with all directors actively participating S LLU are, says Gail Harding, chair of the board’s concerns,” Gray says. in risk identification and mitigation. DJ I
DIRECTORS’ DILEMMA DIRECTOR LENS • A risk committee may be a helpful addition to the board’s committee structure if the organization’s key risks are not being effectively monitored by ON PEUT COMPRENDRE pourquoi le ris- fait jurisprudence à la Cour de la Chancel- the existing board committees. que figure au sommet des préoccupations lerie du Delaware – allèguent que les ad- • A risk committee can enhance risk de plusieurs conseils. Outre la pandémie ministrateurs « ont manqué à leurs devoirs oversight but not replace the risk mondiale, nous faisons face à d’énormes en négligeant de surveiller les opérations de responsibility of the board. défis, dont la guerre en Europe, l’inflation, l’entreprise ». une récession possible et les casse-têtes Une fois créé, le comité des risques devrait • Risk committees should share their risk reliés à la chaîne logistique. Par ailleurs, qui avoir un mandat clair quant aux tâches à en- heat maps and environmental scans ne risque rien n’a rien. La reconnaissance treprendre et à la manière de communiquer with all directors to help increase their et l’atténuation du risque sont des éléments ses conclusions à l’ensemble du conseil. knowledge of the organization’s risks. importants de la gestion d’une entreprise. La composition du comité est aussi im- La création d’un comité des risques est une portante. Le conseil a l’occasion d’y nom- stratégie qu’adoptent certaines entrepris- mer des gens ayant des connaissances et • Un comité des risques peut s’avérer es pour surveiller efficacement les risques. des expériences spécialisées en matière de un ajout utile à la structure du conseil En Australie, par exemple, 40 pour cent des risque. Lorsqu’elle recherche des candi- si les principaux risques courus par répondants à un récent sondage ont indiqué dats, Mme Harding privilégie des admin- l’organisation ne font pas l’objet d’une que leur conseil était doté d’un comité dis- istrateurs qui ont une solide compréhen- surveillance efficace de la part des tinct consacré à la surveillance des risques. sion des structures de risque ou dont comités du conseil existants. Pour déterminer si la création d’un comi- l’expérience professionnelle offre une • Un comité des risques peut améliorer la té des risques est nécessaire, les organisa- compréhension approfondie des risques surveillance du risque, mais ne peut se tions devraient examiner leur registre des encourus par l’organisation. substituer à la responsabilité du conseil. risques – un tableau ou document identifi- L’identification, l’atténuation et l’étab- ant les risques auxquels elle fait face – afin lissement de la propension au risque font • Les comités des risques devraient de comprendre les principales menaces qui partie de la tâche de chaque administra- partager leurs cartes thermiques et se posent, affirme Gail Harding, qui préside teur. Selon Mme Harding, tous les admin- analyses environnementales avec tous le comité des risques du conseil de la Me- istrateurs devraient disposer d’une anal- les administrateurs. ridian Credit Union. Une fois cela fait, les yse environnementale des risques. Elle administrateurs devraient être en mesure souligne que cela « sensibilise le conseil d’évaluer si ces risques font l’objet d’une aux tendances qui ont cours en la matière. Presented in partnership with Torys LLP. surveillance adéquate dans le cadre de la Lors de nos réunions du conseil, je peux structure actuelle des comités du conseil. alors fournir davantage d’éléments de con- Un comité des risques peut améliorer texte sur les sujets que nous abordons en la fonction de surveillance du conseil, so- profondeur ». Une carte thermique dotée umettre des recommandations sur la pro- de codes de couleur pour identifier les ris- pension et la tolérance de l’organisation au ques les plus élevés et les courbes de ten- Send your comments risque, en plus de renforcer sa capacité de dance peut aussi s’avérer un moyen utile de or ideas to: gérer les risques aggravants. Les membres tenir le conseil informé des risques courus du comité peuvent aussi être en mesure par l’organisation. Heather Wilson d’approfondir les questions et d’acquérir Il faut maintenir une approche intégrée Senior Director, Policy and Research ainsi une compréhension plus complète du risque, peu importe la structure de [email protected] de la complexité de l’environnement de surveillance. Un comité des risques peut Every issue, we will feature a l’organisation en matière de risque. Une s’avérer un ajout utile si les risques pesant question from readers or one surveillance inadéquate de la part du con- sur l’organisation ne sont pas bien sur- from ICD’s complimentary seil peut être une source de litiges, sout- veillés par les comités existants. Peu im- research service, ICD BoardInfo ient Andrew Gray, associé chez Torys LLP porte la structure qui y préside, la surveil- à Toronto. Aux États-Unis, par exemple, les lance du risque est sous la responsabilité de icd.ca/boardinfo plaintes de Caremark – nom d’un cas qui a l’ensemble du conseil. DJ
PHOTOGRAPHS BY Samuel Tessier AN ENHANCED PERSPECTIVE As chair of National Bank of Canada, JEAN HOUDE uses his government and private sector experience to see beyond the near horizon, Guy Dixon writes Comme président du conseil de la Banque Nationale du Canada, JEAN HOUDE combine son expérience des secteurs public et privé dans un style de leadership qui se projette au-delà de l’horizon, écrit Guy Dixon IN 2009, in the wake of the Great Recession, economist and New EN 2009, dans la foulée de la Grande récession, l’économiste et York Times columnist Paul Krugman wrote an opinion piece that chroniqueur du New York Times Paul Krugman publiait un article touched a nerve in the financial sector. Banking, he said, should be d’opinion qui toucha une corde sensible dans les milieux finan- made boring again. At the time, the world was crawling out from ciers. Le secteur bancaire, écrivait-il, devrait redevenir ennuyeux. under the collapse of U.S. subprime mortgages, and subsequent À l’époque, le monde sortait de peine et de misère de la crise des credit crises had rocked banks globally. Krugman’s argument was prêts hypothécaires à risque et des crises subséquentes qui ont that regulators should do what they did during the Great Depres- secoué le monde bancaire à l’échelle mondiale. L’argument de sion of the 1930s and tighten controls on U.S. banks, reforming Krugman faisait valoir que les autorités réglementaires devraient them into risk-averse bulwarks, there to protect against future cri- agir comme elles l’avaient fait durant la Grande dépression des ses, not contribute to them. années 1930 en resserrant les contrôles sur le secteur bancaire,
‘You must remember, when you are on a bank board or bank management, you op- erate under a licence of a public authority,’ says National Bank chair Jean Houde, who credits Canada's stronger regulatory environment with helping the country avoid the worst of the Great Recession.
‘I THINK EXPERIENCE IN THE PUBLIC SERVICE HELPED ME TO BETTER UNDERSTAND PEOPLE AND BEHAVIOUR.’ « JE PENSE QUE MON PASSAGE DANS LA FONCTION PUBLIQUE M’A AIDÉ À MIEUX COMPRENDRE LES GENS ET LEURS COMPORTEMENTS. » Krugman was making a point about regulation. Yet, it’s easy to pour le transformer en rempart à l’abri du risque et le protéger de take the argument a step further — to question, perhaps, the role of crises futures et non y contribuer. banks in society, to look beyond short-term profits and self-inter- M. Krugman prenait fait et cause pour la réglementation. Il est est, toward broader perspectives. And these ideas could originate facile de pousser l’argument plus loin – de remettre en question, with board directors who may have larger public interests in mind. peut-être, le rôle des banques dans la société, de porter le regard While Canada's banking sector came through the financial cri- au-delà des profits et des intérêts à court terme, d’élargir les per- sis relatively unscathed compared with the United States, thanks spectives. Et ces idées peuvent prendre forme avec des administra- to our stronger regulatory tradition, Jean Houde, a member of the teurs qui ont à cœur l’intérêt public. board of Montreal-based National Bank of Canada since 2011 and its Alors que le secteur bancaire canadien a été relativement épargné chair since 2014, says Krugman had the right idea. par la crise financière – en comparaison avec les États-Unis – grâce “For sure, we went through the financial crisis,” says Houde, who à une tradition réglementaire plus forte, Jean Houde, membre du served as Quebec’s deputy minister of finance at the time of the conseil de la Banque Nationale du Canada depuis 2011 et président upheaval. “We had our commercial paper [debt] crisis mostly in du conseil depuis 2014, affirme que M. Krugman avait raison. Quebec, but also elsewhere in Canada. But that demonstrates in my « Bien sûr, nous avons été touchés par la crise, admet M. Houde, view that the regulations done by OSFI [the Office of the Superin- qui à l’époque était sous-ministre des Finances du Québec. La tendent of Financial Institutions] and others, [including] the Bank crise du papier commercial a surtout affecté le Québec, mais aussi of Canada, were right, and we were a lot less risky as a system than d’autres régions du Canada. Mais selon moi, cela démontre que les the U.S. banks were.” réglementations édictées par le BSIF [Bureau du surintendant des And yet, public interest quickly enters his thinking. “Just keep in mind institutions financières] et d’autres – dont la Banque du Canada –
that it’s a kind of public service being a bank, because you have a licence étaient les bonnes et que notre système bancaire était bien moins à to operate that business, and the government can decide to take back risque que celui des États-Unis. » this licence. … You must remember, when you are on a bank board or Pourtant, la question de l’intérêt public s’insinue rapidement dans bank management, you operate under a licence of a public authority.” son esprit. « N’oublions pas que la banque est un service public. » Public service wisdom La sagesse du service public It’s that intersection between private business and public interest C’est à ce carrefour entre l’entreprise privée et l’intérêt public que la where Houde’s career differs from many board chairs. Houde has carrière de M. Houde diffère de celle de beaucoup de présidents du been inducted as a 2022 Fellow of the Institute of Corporate Direc- conseil. Celui-ci a été nommé Fellow 2022 de l’Institut des admin- tors, recognizing his many years of service on boards, including istrateurs de sociétés, en reconnaissance de ses nombreuses années as chair of the Montreal-based energy company Énergir from 2011 de service au sein de conseils d’administration, dont la présidence to 2020. Previously, he held various senior management positions du conseil d’Énergir de 2011 à 2020. Auparavant, il avait occupé at National Bank before working for Quebec’s Ministry of Finance divers postes de gestion à la Banque Nationale avant d’œuvrer au from 2005 to 2009. ministère des Finances du Québec de 2005 à 2009. “When I left the bank, I was appointed to work in the public ser- « Quand j’ai quitté la banque, j’ai été nommé dans la fonction pub- vice. Two years after that, the government asked me to become the lique. Deux ans plus tard, le gouvernement m’a demandé de devenir deputy minister of finance, and that was unfortunately [during] the sous-ministre des Finances et c’était malheureusement pendant la financial crisis of 2007 and 2008. And I was in touch a lot with CEOs crise financière de 2007 et 2008. J’ai alors été en contact avec beau- of financial institutions in Quebec,” Houde says. This helped lead to coup de dirigeants d’institutions financières au Québec », explique his appointment on the National Bank board. “That was maybe not M.Houde, ce qui l’a sans doute mené à sa nomination au conseil de the only reason, but one of the reasons they thought of me becom- la Banque Nationale. « Ce n’était peut-être pas la seule raison, mais ing chairman of the bank, because they saw what we did, trying to ces gens ont vu comment nous tentions de gérer la crise. ». manage that crisis and the way that I behaved in that crisis.” Il explique qu’il n’avait jamais rêvé de retourner dans le secteur Speaking in relaxed, accented English, he says that he never bancaire à titre d’administrateur, encore moins comme président dreamed he’d be asked to return to the bank to become a director, du conseil. « Franchement, j’ai été surpris. Mais ce fut une bonne much less chair, after having left the bank and its management surprise. J’ai fait de mon mieux avec l’expérience qui était la mi- team. “Frankly, it came to me as a surprise. Not a bad surprise, but enne. Je pense que mon passage dans la fonction publique m’a aidé a good surprise. But I did my best with my background. I think à mieux comprendre les gens et leurs comportements. » experience in the public service helped me to better understand Son mandat au conseil de la Banque Nationale a suivi la crise people and behaviour.” financière mondiale. Mais les risques n’en demeurent pas moins His tenure on the National Bank board followed the global finan- constants encore aujourd’hui : tensions géopolitiques, menaces à cial crisis. Still, the risks are constant: geopolitical tensions, wors- l’environnement, taux d’inflation en croissance, au moment même ening environmental news, higher rates of inflation, even as the où l’industrie elle-même traverse une période d’énormes change- industry itself navigates a period of tremendous change. Financial ments. La technologie financière est annonciatrice d’une époque technology may herald an era when the public may see banks less où les banques seront moins des institutions physiques qu’une col- as physical institutions than a collection of apps on their phones lection d’applications sur les téléphones et d’images sur les écrans. and blips on their screens. « Les banques sont aujourd’hui d’immenses appareils technologiques. “The banks today are huge technology outfits. You have to be able Il faut être en mesure de comprendre ça », soutient Jean Houde. to understand that, and be able also to challenge the proposals that are submitted to the board,” Houde says. Des besoins en évolution Le changement constant – surtout d’ordre technologique – est la Evolving needs première chose que souligne M. Houde quand il évoque son man- Constant change, especially technological change, is the first thing dat. Cette situation a amené au conseil de nouveaux administra- Houde notes when asked about his time on the National Bank teurs dotés d’expertise dans les technologies rapidement en émer- board. It has meant bringing in new directors with expertise in gence et d’une connaissance directe des habitudes changeantes des fast-emerging technologies and direct knowledge of changing cus- clients. Cela a aussi entraîné la nomination de certains adminis- tomer habits. This has entailed appointing some directors from out- trateurs choisis hors des communautés d’affaires de Montréal et de side the Montreal and Quebec business communities. Although the Québec. Comme il l’explique, le conseil offre aujourd’hui une plus board tries to maintain a majority of members from Quebec, Houde grande diversité régionale. « Si on examine la composition du con- says, the board today has more regional diversity. “If you look at the seil aujourd’hui, elle est bien différente de ce qu’elle était lorsque je composition of the board now, it’s quite different than when I took suis devenu président, parce que les besoins de l’organisation ont over the chairmanship, because the needs of the organization have changé et qu’il nous faut nommer les bonnes personnes. » changed, and we should appoint the right people,” Houde says. L'importance marquée qu’accorde le conseil de la Banque Natio-
The difficulty with new board mem- bers who come from the C-suite, National Bank chair Jean Houde says, is getting them to relinquish their CEO hats: ‘It takes a little bit of time to change their mindset.’
‘YOU HAVE TO UNDERSTAND THAT YOU HAVE A ROLE TO PLAY, BRINGING EXPERTISE AROUND THE TABLE, GIV ING THEM THE OCCASION TO EXPRESS THEMSELVES.’ « ON DOIT COMPRENDRE QU’ON A UN RÔLE À JOUER POUR AMENER DE L’EXPERTISE AUTOUR DE LA TABLE ET DONNER AUX GENS QUI LA DÉTIENNENT L’OCCASION DE S’EXPRIMER. » National Bank board’s strong emphasis on technology, from nale à la technologie – qu’il s’agisse des risques toujours présents en managing ever-present cybersecurity risks to better understanding matière de sécurité informatique ou d’une meilleure compréhension how customers adopt new technology, is reflected in the board’s de la manière dont les clients adoptent les nouvelles technologies – se structure. Like many boards, much of the work is done by commit- reflète dans la structure du conseil. Comme c’est le cas chez beaucoup tees, and the National Bank board has given information technol- de conseils, une bonne partie du travail est effectué par les comités et ogy its own designated committee, emphasizing its importance to le conseil a lui-même créé un comité voué aux technologies de l’in- the bank. In addition, appointees to the board in recent years have formation. En outre, on compte parmi les administrateurs nommés included Rebecca McKillican, a younger director with an extensive au cours des dernières années des gens comme Rebecca McKillican, background in e-commerce and finance, and Pierre Blouin, a vet- une jeune administratrice possédant une expérience solide en com- eran telecom industry leader. merce électronique et en finances, ainsi que Pierre Blouin, un leader Houde says this underscores the effort that the board has made chevronné de l’industrie des télécommunications. to keep pace with the constant change faced by management. “The « Il faut une certaine humilité pour présider le conseil d’une way that I see it, it takes some humility when you chair a bank,” he banque, soutient Jean Houde. Bien sûr, on représente l’autorité ul- says. “You for sure represent the authority, the ultimate authority. time. Mais on doit aussi comprendre qu’on a un rôle à jouer pour You are even the boss of the CEO. But you have to understand that amener de l’expertise autour de la table et donner aux gens qui la you have a role to play, bringing expertise around the table, giv- détiennent l’occasion de s’exprimer. » ing them the occasion to express themselves, advise management, challenge the management.” Un dialogue continu La difficulté qui se pose avec les nouveaux administrateurs prove- ‘Continuous dialogue’ nant d’une équipe de direction consiste à leur faire renoncer à leur The difficulty with new board members who come from the chapeau de chef de la direction, affirme M. Houde. « Il faut un cer- C-suite, Houde says, is getting them to relinquish their CEO hats. tain temps pour changer ça et cela représente un certain défi pour “It takes a little bit of time to change their mindset. They are not le président du conseil. Il faut rester calme. » CEOs any more. They don’t have to think they are in charge, and Dominic Paradis, vice-président des Affaires juridiques et
that’s a little bit of a challenge for the chair. … But that’s part of secrétaire général de la Banque Nationale, décrit Jean Houde com- the chair’s role. You have to be calm, and you have to have some me un président du conseil constamment « sur le terrain », où il humility,” Houde says. entretient des relations personnelles avec les membres de l’équipe Dominic Paradis, National Bank’s senior vice-president of le- de direction. Il s’agit là d’une compétence délicate à exercer. « Ce gal affairs and corporate secretary, describes Houde as a chair dialogue continu, hors des réunions du conseil et des rencontres who is regularly “on the floor,” making the rounds of different stratégiques, est important à ses yeux. S’il lit quelque chose dans managers’ offices, maintaining personal relationships. But it’s les journaux, je vais recevoir un appel. C’est ainsi qu’il voit le lead- a delicate skill. “That’s important for him, this continuous dia- ership et son implication. » logue, notwithstanding board meetings or monthly meetings or Cela s’inscrit aussi dans l’approche de la banque en matière de strategic meetings. If he sees something in the newspapers, I’m succession à l’échelle du conseil, souligne M. Paradis. « Il ne s’agit going to receive a call. That’s the way he sees his leadership or pas de diversité pour la diversité. Il s’agit de diversité d’approches, his involvement,” Paradis says. d’états d’esprit, de culture. Nous partons donc d’une évaluation de This also ties into the bank’s approach to board succession, la performance du conseil en tant qu’unité de gouvernance. Nous Paradis says. “It’s not diversity for diversity’s sake. It’s diversity nous demandons ensuite si nous n’avons pas raté quelque chose of thought, of approach, of mindset, of culture. … So we start sur le plan structurel. Avons-nous raté quelque chose que les gens from an assessment of how the board is performing as a unit, as en place pourraient apprendre? Devrions-nous amener au conseil a governance unit. And then we see, are we missing something quelqu’un d’autre susceptible d’accélérer notre apprentissage, no- structurally? Are we missing something that the existing people tre impact, notre performance? Voilà comment nous envisageons la can learn? Or do we need to bring in somebody else to acceler- succession au sein du conseil. » ate our learning, accelerate our impact, our performance? That’s Il n’en demeure pas moins que la nécessité d’attirer de nouvelles how we see board succession.” personnes – essentiellement un flot de nouvelles connaissances à Yet, attracting new people — essentially drawing a flow of new la banque même et au conseil – exige aussi une approche mesurée, knowledge into the bank and onto its board — also requires a explique M. Houde. « Quand on est nommé président du conseil, measured approach, Houde says. “When you are appointed as on ne se dépêche pas de rencontrer l’équipe de direction. On doit chair, you don’t go around rapidly [meeting management],” he d’abord comprendre les gens qui siègent au conseil. Après, on com- says. “You have to understand the people, first of all, on your mence à bâtir des relations avec les membres de l’équipe dirigeante, board. And after that, you start to build a relationship with the à commencer par le chef de la direction. Cela prend du temps. Il management team, first of all with the CEO. It takes time. You faut s’ajuster, comprendre ce qu’il faut et ce qu’il ne faut pas faire. » have to adjust yourself [and] understand what to do and what « Mais rappelons-nous, poursuit-il, que notre rôle consiste à don- not to do,” he cautions. ner notre avis à titre d’administrateurs. Il consiste aussi à être ce “But remember, our role is to give advice as a board member. qu’on pourrait appeler un lieu efficace de remise en question auprès It is also to be what we call an effective challenge to the man- de la direction. Dans mon cas, je connais la banque depuis long- agement,” he adds. “In my case, I’ve known the bank for many temps. Cela m’a aidé. Je ne crois pas que ce serait nécessairement le years. So that helped. I don’t think it would be the case for the cas pour la personne qui me remplacera un jour, parce qu’elle n’aura person who will [one day] replace me, because he will not have pas l’expérience d’avoir été gestionnaire de la banque. » the experience of having been a manager of the bank. That has Toutefois, les remises en question fondées sur l’adoption de nou- helped for sure,” Houde says. veaux points de vue et de nouvelles expertises extérieures au milieu A challenge, however, in embracing new views and expertise bancaire attirent l’attention de l’extérieur, en particulier chez la com- outside of the bank, is that it increases outside exposure and munauté des affaires tissée serrée du Canada et celles étroitement attention, particularly in Canada’s close-knit business commu- intégrées de Montréal et de Québec. Les leaders d’affaires « ont une nity and in the even more tightly-bound Montreal and Quebec existence presque publique, parce qu’ils sont suivis par les autorités communities. Business leaders “live almost publicly, because réglementaires, le gouvernement, les actionnaires et les déposants », they are followed by the regulators, the government, the share- explique Robert Tessier, ancien président du conseil de la Caisse de holders, the depositors,” says Robert Tessier, former chair of dépôt et placement du Québec. M. Tessier connaît Jean Houde depuis the Caisse de dépôt et placement du Québec, one of the largest une quarantaine d’années et souligne qu’ils ont tous deux, au cours de pension fund managers in Canada. Tessier has known Houde for leur carrière, été la cible des regards privés et publics. 40 years or so and notes how they both have had careers in the private and public eye. L’intérêt public et l’intérêt privé « Son profil est quelque peu similaire au mien, signale-t-il, parce The public and private good que nous sommes passés du secteur public au monde des affaires à “He has a pattern a bit similar to me, because we’ve been switching quelques reprises durant nos carrières. Cela vous confère une per- from the government to businesses a couple of times in our lives. It spective différente sur la manière de siéger à un conseil. Il n’y a pas gives you a different perspective on the way you manage or beaucoup de gens qui ont joué ce double rôle au sein de la société. » partici-
pate on a board. That’s one characteristic. You don’t have that many Le regard du public entraîne aussi des questions sur l’environne- people who have this dual role in society.” ment, l’engagement social et le rôle de l’entreprise dans une per- Public scrutiny also means questions about the environment, spective largement comprise de l’intérêt public – « un déluge de social commitment and a business’s role in the larger public good questions », souligne M. Tessier. Pour M. Houde, son mandat de — “a shower of questions,” as Tessier says. For Houde, his time as sous-ministre des Finances du Québec lui a permis de voir com- Quebec’s deputy finance minister allowed him to see how these ment ces questions d’intérêt public et d’entreprise privée se che- questions of public good and private business overlap, and not just vauchent, et pas seulement en situation de crise. in times of crisis. « Je crois qu’en retournant au secteur privé, j’ai réfléchi à cette “I think that when I came back to the private sector, I was expérience et tenté d’inciter les gens à élargir leurs horizons et à thinking of that experience and tried to … influence people to dépasser la stricte question des prochains résultats, parce que toute think more broadly than strictly focusing on the next results, entreprise devrait envisager l’avenir, comme le fait toute personne because [every] company should look into the future, as a good vouée au service public. Quel est l’avenir de la qualité des services public-service person does. What’s the future of the quality of que nous fournissons au public? À l’échelle de la banque, quel sera the service we provide to the public? At a bank level, what will l’avenir de l’organisation? De quel type de ressources humaines au- be the future of the organization? What type of human resources rons-nous besoin? Quelles seront les valeurs de cette entreprise? do we need? What are the values of this company? What is the Quelle est sa mission? Il faut se poser ces questions avant de trop se mission of this company? — before focusing too much on the re- concentrer sur les résultats du prochain trimestre. » sults of the next quarter. « Je suis absolument convaincu, conclut-il, que si on a de bonnes “I am absolutely convinced that if you have good values, a clear valeurs, une mission claire, on réussira mieux que n’importe quelle mission, you will succeed better than any organization,” he says. DJ organisation. » DJ GUY DIXON is a Toronto-based writer and was, for many years, GUY DIXON est un journaliste de Toronto qui fut pendant plu- a reporter at The Globe and Mail, where he covered business, the sieurs années reporter au Globe and Mail, où il a couvert l’écono- arts, and often the intersection between the two. mie, les arts et fréquemment le carrefour entre les deux. KPMG Board Leadership Centre From insight to oversight Learn more: home.kpmg/ca/blc Learn more
ILLUSTRATIONS BY Josie Portillo The boss is not okay After two-and-a-half gruelling years of leading organizations in a global pandemic, the C-suite is burned out. If they haven’t already done so, boards need to put executive mental health on the agenda, Prasanthi Vasanthakumar writes Après deux épuisantes années et demie de gestion d’organisations au cœur d’une pandémie mondiale, les équipes de direction sont au bout du rouleau. S’ils ne l’ont pas encore fait, les conseils doivent placer la santé mentale de leurs gestionnaires à l’ordre du jour, écrit Prasanthi Vasanthakumar. KEVIN FORD REMEMBERS the panic and hysteria of the early days KEVIN FORD SE RAPPELLE la panique et l’hystérie qui ont régné of the pandemic. He recalls the jarring images of bodies in make- dans les premiers jours de la pandémie. Il se souvient des images shift morgues and people living in lockdown as Covid-19 swept the discordantes de corps gisant dans des morgues improvisées et de globe, leaving behind a trail of illness and death. The CEO of Cal- gens confinés au moment où la Covid-19 s’est mise à déferler sur le ian Group Ltd., a consultancy based in Ottawa, would lie awake at monde, laissant dans son sillage la maladie et la mort. Le chef de la night wondering how he would keep his company afloat, staff safe direction du Groupe Calian, une firme de consultants d’Ottawa, se and customers happy. couchait le soir en se demandant comment il allait maintenir son “Covid-19 caught every leader by surprise because we didn’t have entreprise à flot, son personnel en sécurité et ses clients satisfaits. experiences related to global pandemics in our toolbox,” Ford says. « La Covid-19 a pris tous les leaders d’affaires par surprise », ex-
“So, you’re trying to learn and lead at the same time. Every night I’d plique M. Ford. Tous les soirs, j’allais au lit en me disant : ‘Je ne sais go to bed thinking, ‘Man, I don’t know if I’m doing this right, but pas si je fais ce qu’il faut, mais j’ai survécu un autre jour.’ C’est com- I survived another day. Tomorrow’s a new day.’ That’s how I’ve felt me ça que je me suis senti pendant les deux dernières années. » for the last two years.” Il n’est pas facile d’être chef de la direction dans la meilleure des It’s not easy being the CEO at the best of times, but the pandemic situations, mais la pandémie a rendu tout plus difficile. Une étude has made everything that much harder. A 2021 study by Deloitte menée en 2021 par Deloitte Canada et LifeWorks, une entreprise Canada and LifeWorks, a human resources company, found that 82 de ressources humaines, a indiqué que 82 pour cent des hauts di- per cent of senior leaders are at risk of burnout. Of these exhausted rigeants sont à risque d’épuisement professionnel. Parmi eux, 96 executives, 96 per cent say their mental health has taken a hit. pour cent affirment que leur santé mentale s’en est ressentie. One reason for this exhaustion stems from the sense of responsi- L’une des raisons de cet épuisement provient du sens des re- bility leaders bear for the health and well-being of their employees. sponsabilités que ces leaders éprouvent à l’égard de la santé et du At the onset of the pandemic, Kara Hardin, founder of The Practice bien-être de leurs employés. Kara Hardin, fondatrice du Practice Lab, a Toronto-based company that offers mental health training Lab, une entreprise de Toronto qui offre des services de forma- and education, noticed that leaders focused on protecting their staff, tion en santé mentale, a remarqué que les leaders sont attachés à keeping them employed, giving them updates and being transparent. la protection de leurs employés, à maintenir leurs emplois et à les “All their leadership skills went into overdrive, so there was in- informer de façon transparente. credible burnout,” Hardin says. “These executives had the highest « Toutes leurs compétences en matière de leadership ont été engagement coupled with the poorest health.” sollicitées à l’excès, provoquant ainsi des cas incroyables d’épuise- Sleeplessness, irritability, anxiety, loneliness, isolation, a lack of ment », affirme-t-elle. motivation, and a desire for idleness or intense change can be signs Le manque de sommeil, l’irritabilité, l’anxiété, la solitude, l’isole- of deteriorating mental health. But, as with all ailments, prevention ment, le manque de motivation ainsi qu’un désir intense d’inaction is the best cure. Instead of waiting for these red flags to appear, Har- ou de changement peuvent être des signes de détérioration de la din says boards should actively create a relationship that supports santé mentale. Mais comme pour toutes les maladies, la prévention the mental health of the C-suite. demeure le meilleur remède. Plutôt que d’attendre l’apparition de signes inquiétants, Mme Hardin soutient que les conseils devraient The board-CEO relationship créer activement une relation qui soutient la santé mentale des A good relationship starts with the board asking the right questions équipes de direction. of the CEO, Hardin says. These might include: How are you, really? La relation entre le conseil et le chef de la direction What’s keeping you up at night? Do you have a vacation plan? What structure is in place for when you’re away, so you can truly unplug? Une bonne relation se fonde sur la nécessité pour le conseil de poser Do you have enough support in your role? What parts of your job les bonnes questions au chef de la direction, explique Mme Hardin : are energizing? What tasks are not a good use of your time? comment vous-sentez-vous vraiment? Qu’est-ce qui vous tient “CEOs need a board that is listening and curious and recogniz- éveillé la nuit? Quelle structure est en vigueur en votre absence, ing their work,” says Hardin. “And that means the board must ask pour être certain que vous puissiez vraiment décrocher? Avez-vous more questions than it can answer, and be willing to let the CEO assez de soutien dans votre rôle? Quels éléments de votre travail guide the discussion. If possible, it shouldn’t only be a reporting sont stimulants? Quelles sont les tâches qui ne mettent pas votre relationship – it should be co-operative, collaborative and creative.” temps à profit? Boards should also tweak their expectations in a crisis, and pro- « Les chefs de la direction ont besoin d’un conseil curieux et à vide oversight with empathy and understanding. l’écoute et qui reconnaît leur travail, poursuit-elle. Cela veut dire que “If you’re expecting your executives to show up like they did le conseil doit poser plus de questions qu’il n’a de réponses et être prepandemic, you have the wrong expectation,” says Ford. “The disposé à laisser le chef de la direction guider la discussion. Si pos- exhaustion, the virtual nature of running meetings, and the reality sible, ça ne devrait pas seulement être une relation d’information, of what executives were dealing with… . There had to be an under- mais aussi de coopération, de collaboration et de rapports créatifs. » standing that maybe the quality of the board package isn’t what it Les conseils devraient aussi ajuster leurs attentes en situation de crise used to be, but that’s okay because they’re worried about the right et déployer leur tâche de supervision avec empathie et compréhension. things, just not everything. As a board, the best thing you can do is « Si vous espérez que votre équipe de direction se comporte say, ‘Let’s simplify, let’s focus on the right things.’” comme avant la pandémie, vous faites fausse route, assure M. Ford. Mary Jo Haddad, a corporate director at Telus, says it’s important that Il faut comprendre que les choses ne sont plus ce qu’elles étaient. the board recognize the pressures facing the CEO. But she also worries Comme membre du conseil, la meilleure attitude consiste à vouloir about the executives who report to the CEO. If a stressed-out CEO is simplifier les choses, à se concentrer sur ce qui importe. » making demands of executives on their days off, they never have time to Mary Jo Haddad, administratrice de Telus, soutient qu’il est im- relax, reflect and regenerate their energy, says Haddad. Identifying this portant pour le conseil de reconnaître les pressions qui s’exercent type of always-on work ethic comes from conversation and sur le chef de la direction. Mais elle s’inquiète aussi au sujet des observation.
The board, particularly the human resources committee, membres de la direction qui sont sous son autorité. Si un chef de should look at people, culture, wellness and compensation. la direction croulant sous le stress exige d’eux de travailler les jours This big-picture approach broadens how directors view their de congé, ils n’ont pas le temps de relaxer, de réfléchir et de faire le roles and assess wellness. By asking questions about executive plein d’énergie, souligne-t-elle. well-being and the adequacy of board support, directors can Le conseil – en particulier le comité des ressources humaines – build feedback mechanisms. devrait se préoccuper des gens, de la culture, du bien-être et de la “When executives know the board is watching, listening and rémunération. Cette approche globale élargit la manière dont les supporting through commentary, questions and feedback, that’s administrateurs voient leurs rôles et évaluent le bien-être des cad- where the strength of excellent governance cultures come from,” res. C’est ainsi qu’en leur posant des questions, le conseil peut bâtir says Haddad, a former nurse who served as CEO of the Hospital for des mécanismes de rétroaction. Sick Children (SickKids) between 2004 and 2013. « Lorsque les cadres savent que le conseil observe, les écoute et les Some leaders need more explicit direction to take care of them- soutient par des commentaires, des questions et de la rétroaction, selves. Marina Go, chair of Adore Beauty Group Ltd. in Australia, voilà sur quoi se fonde une excellente culture de gouvernance », af- has forced some executives to go on vacation. firme Mme Haddad, une ancienne infirmière qui a été cheffe de la “CEOs are not necessarily good at setting boundaries for them- direction de l’Hospital for Sick Children (SickKids) de 2004 à 2013. selves, so in some ways, we have to help them do that,” says Go. Certains leaders ont besoin d’indications plus claires sur les directions “They’re generally driven people who want to do exciting things à prendre. Marina Go, présidente du conseil d’Adore Beauty Group Ltd 24/7. But the board’s duty of care is to our CEO, so we must ensure en Australie, a forcé certains de ses cadres à partir en vacances. that he and she are looking after themselves.” « Les chefs de la direction ne sont pas nécessairement doués pour However, many CEOs aren’t overly eager to bare their souls to se fixer des limites. Donc, nous devons les aider », explique Mme Go. the board. The Deloitte/LifeWorks study finds that more than half Cependant, beaucoup de chefs de la direction ne sont pas trop of respondents think their careers will suffer if people know about désireux de se mettre à nu face au conseil. L’étude de Deloitte/Life- TAKING INDEPENDENT EXECUTIVE COMPENSATION AND GOVERNANCE ADVISORY TO A NEW LEVEL Introducing our founding partners, who bring over 65 years of combined expertise. Amanda Voegeli, CFA Ryan Resch, ICD.D Alex Pattillo Tara Armstrong, CFA President & Managing Partner Senior Partner Partner Partner Established in 2021, Southlea is an innovative, independent executive compensation and governance advisory firm. Specializing in the financial services, asset management, technology and natural resources sectors, we create compensation programs with impact, delivering fresh insights and perspectives based on the latest market trends and governance practices. We provide independent advice to the board while working collaboratively with management in the best interests of the organization. As the newest member of the Global Governance and Executive Compensation Group (GECN), Southlea is proud to be the only Canadian independent advisory firm with a truly global presence. Southlea is a certified Women’s Business Enterprise and is Rainbow Registered as an LGBT+ friendly organization, and our diverse perspectives are embedded into everything we do. www.southlea.com
their mental health challenges. For this reason, Go believes a rela- Works indique que plus de la moitié des répondants pensent que tionship of trust is more critical than ever. leur carrière en souffrira si les gens sont au courant de leurs prob- “Unless the CEO can trust you not to view them negatively, lèmes de santé mentale. Voilà pourquoi, selon Mme Go, il est plus they’re not going to tell you how they’re feeling and that creates que jamais essentiel de bâtir une relation de confiance. a problem,” says Go. “They need permission from the board to be « À moins que le chef de la direction n’ait le sentiment que vous vulnerable; otherwise, they’re probably not being honest about n’avez pas une vision négative de lui, il ne vous fera pas connaître their mental state. And it’s becoming more important than ever to ses sentiments et c’est un problème. Ces dirigeants ont besoin que ensure we don’t burn our CEOs out because there are a lot of chal- le conseil les autorise à être vulnérables; autrement, ils ne seront lenges ahead.” sans doute pas honnêtes au sujet de leur état mental. Et il devient de plus en plus important de nous assurer que notre chef de la di- Tone at the top rection ne s’épuise pas, parce qu’il y a beaucoup de défis à relever. » As a numbers guy, Chuck Bruce understands the financial impli- Donner le ton au sommet cations of burnout and mental health inaction. With more than 25 years experience in financial services, the chair of the Mental Comme homme de chiffres, Chuck Bruce comprend les implica- Health Commission of Canada believes a psychologically healthy tions financières de l’épuisement professionnel relatif à la santé and safe working environment begins with the board. mentale. Avec plus de 25 ans d’expérience en services financiers, Bruce suggests grounding mental health awareness in director orien- le président du conseil de la Commission de la santé mentale du tation and evaluations as a first step. It should also be added to the board Canada croit qu’un environnement de travail psychologiquement agenda as a recurring item, “not as a nice-to-have, but a must-have.” sain et sécuritaire commence par le conseil. As board chair, Bruce highlights the importance of checking in on M. Bruce suggère comme première étape d’ancrer la sensibili- the well-being of his directors as well. Do they have the right amount sation à la santé mentale dans l’orientation et l’évaluation de l’ad- of information? Do they feel supported in decision-making? Bruce ministrateur. On devrait aussi l’ajouter comme élément récurrent learned that directors found five-hour b oard m eetings o n Z oom de l’ordre du jour du conseil, « non pas comme quelque chose de draining. To address this problem, the board held shorter, more fre- sympathique, mais comme quelque chose d’essentiel ». quent meetings that increased engagement and productivity. Comme président du conseil, M. Bruce insiste sur l’importance “Sometimes we forget about the strength and depth of experi- de vérifier également le bien-être de ses administrateurs. Détien- ence of the individual directors around the table,” says Bruce. “They nent-ils le bon volume d’information? Se sentent-ils soutenus dans often come from diverse backgrounds, with executive experience in le processus de prise de décision? Il a ainsi appris que les adminis- different jurisdictions in different organizations. Embedding men- trateurs trouvaient épuisantes les réunions du conseil d’une durée tal health in an organization at the board level will trickle down de cinq heures sur Zoom. Pour régler ce problème, le conseil a com- throughout the organization. But it will take time and commitment mencé à tenir des réunions plus courtes, mais plus fréquentes, qui for that messaging and education to filter down.” ont permis d’accroître l’engagement et la productivité. « On oublie parfois la force et la profondeur de l’expérience des ad- New tactics, existing programs ministrateurs autour de la table, souligne Chuck Bruce. Ils sont souvent To show the organization that executive mental health is a priority, issus de milieux diversifiés, avec de l’expérience de cadre dans différents boards can take several actions. First, the board can ask manage- domaines de différentes organisations. L’intégration de la santé mentale ment to report on the state of well-being and resiliency of leaders, au sein d’une organisation à l’échelle du conseil se répercutera à tous les says Zabeen Hirji, executive advisor on the future of work at De- niveaux. Mais cela prendra du temps et de l’engagement avant que le loitte, and corporate director at Sleep Country Canada. This data message et la formation nécessaires fassent leur chemin. » can come from slicing and dicing employee surveys to extract exec- Nouvelles tactiques, programmes existants utive information and adding new questions about the well-being of leaders. Boards can also ask focused questions about projects Pour montrer à l’organisation que la santé mentale des cadres est une that address mental health stigma and wellness. priorité, les conseils peuvent prendre plusieurs mesures. D’abord, le “As a board, I’d look for actions embedded into existing processes conseil peut demander à la direction un rapport sur le bien-être et la like employee surveys,” says Hirji. “Once it’s embedded, it’s more résilience des cadres, explique Zabeen Hirji, conseillère exécutive sur likely to stick. Otherwise, people could say, ‘We’re moving into a l’avenir du travail chez Deloitte et administratrice de Sleep Country different phase of the pandemic; everything’s going to be fine, and Canada. Ces données peuvent provenir d’extraits de sondages menés we can just move on.’” auprès des employés pour en tirer l’information nécessaire et ajouter Much like the annual physicals that many senior leaders undergo, de nouvelles questions sur le bien-être des leaders de l’organisation. executive coaching is another initiative that may be added to existing Les conseils peuvent également poser des questions ciblées sur des wellness programs. Hardin views executive coaching as a space to “de- projets portant sur la santé mentale. flate some of the gravity and remove some of the pressure,” akin to go- « Comme conseil, je serais à la recherche d’initiatives déjà in- ing to the gym. “It’s a place for the CEO to put their worries,” she tégrées dans les processus existants, comme les sondages auprès says.
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The right CEO for the times In this era of exponential change, the definition of strong leadership En cette ère de changements exponentiels, la has shifted. What makes the best candidate for the top job today? définition d’un leadership fort s’est modifiée. Quels According to Mary Jo Haddad, a corporate director, soft skills reign éléments déterminent le meilleur candidat pour le plus supreme. Does the individual have emotional intelligence? Do they important poste de commande aujourd’hui? take care of themselves? Do they seek support? Are they aware of Selon Mary Jo Haddad, les compétences personnelles their strengths and weaknesses? Boards are now asking these types doivent dominer. Le candidat est-il doté d’une of questions. Boards also look at a leader’s track record of managing intelligence émotionnelle? Est-ce qu’il prend soin de through failures and crises. lui-même? Recherche-t-il du soutien? Est-il conscient “You don’t get judgment through crisis, emotional intelligence and de ses forces et de ses faiblesses? C’est le genre self-care off a CV,” says Haddad. “You get that by understanding de questions que posent les conseils aujourd’hui. Ils someone’s journey through leadership.” veulent aussi savoir comment un candidat gère une organisation à travers les échecs et les crises. Part of this understanding comes from looking at how leaders own their mistakes. « On n’acquiert pas du jugement à travers une crise, de l’intelligence émotionnelle et la prise en charge de “When the CEO can step up and acknowledge a mistake, apologize, soi-même sur la foi d’un CV, souligne Mme Haddad. and take the company to the next level, that demonstrates mental On l’obtient par un parcours en leadership. » health strength to me,” says Haddad. “It acknowledges that nothing is perfect. It speaks to how we build our character and trust as Cette vision s’appuie en partie sur l’observation de leaders. To me, that’s a very critical part of leadership.” leaders qui assument leurs erreurs. Similarly, Zabeen Hirji, executive advisor to Deloitte on the future of « Quand un chef de la direction peut reconnaître work, believes vulnerability and authenticity are necessary skills for une erreur, s’en excuser et porter l’entreprise à un any leader in this time of tumult. niveau supérieur, cela est à mes yeux l’indice d’une As executives speak more openly about their mental health solide santé mentale, poursuit Mme Haddad. Pour challenges, others feel comfortable doing so as well, she observes. moi, c’est un élément essentiel du leadership. » These leaders must be willing to admit they don’t have all the De la même façon, Zabeen Hirji croit que answers and invite others to contribute in a crisis. When leaders feel la vulnérabilité et l’authenticité sont des comfortable in their own skin, they can focus on important issues compétences essentielles pour tout leader instead of wasting energy acting like someone they are not. en cette époque de tumulte. “The future of leadership is human,” says Hirji. « L’avenir du leadership est humain », conclut-elle. Rethinking work des employés, explique Mme Hirji. Une fois intégrées, ces mesures One worry plaguing CEOs is the sheer volume of work. According to ont plus de chances de durer. » the Deloitte/LifeWorks survey, it is the top stressor for leaders, with Tout comme les examens médicaux annuels auxquels se soumet- 68 per cent of respondents saying they have more on their plate com- tent beaucoup de cadres supérieurs, le coaching exécutif est une pared to workloads before the pandemic. However, Hirji doesn’t see autre initiative susceptible d’être ajoutée aux programmes de bi- much discussion on the board about this issue because productivity en-être existants. Kara Hardin considère cette pratique comme un and workload aren’t typically standard governance topics. espace destiné à « faire baisser la gravité et la pression », comme si Once again, she recommends embedding the topic in existing on allait au gym. « C’est un lieu qui permet aux cadres de laisser là projects. For example, directors can ask about the impact on people leurs soucis », dit-elle. and productivity when approving a large technology rollout. Is tech- Repenser le travail nology deployed to help executives simplify tasks and liberate time? With the preponderance of virtual meetings, can meeting culture be Le seul volume de travail est un souci considérable pour les chefs revisited to allow for more frequent optional attendance? Are new de la direction. Selon le sondage Deloitte/LifeWorks, il s’agit work models inclusive, and do they offer the right tools and support? du principal élément de stress pour les dirigeants, alors que 68 “It’s important to build rethinking work into decisions around pour cent des répondants affirment qu’ils ont plus de pain sur la where and when the work is done, as opposed to doing things the planche qu’avant la pandémie. same way, just in a different place,” says Hirji. Là encore, Mme Hirji recommande d’intégrer la question dans
Heavy is the head … les projets existants. Par exemple, avant d’approuver l’implantation Times have certainly changed. From the invasion of Ukraine massive d’une nouvelle technologie, les administrateurs peuvent and fractured supply chains to inflation and a potential re- s’enquérir de son impact sur les gens et la productivité. La tech- cession – all against the backdrop of a mutating virus and the nologie aidera-t-elle les cadres à simplifier leurs tâches et à libérer growing threat of climate change – it’s no wonder CEOs are du temps? Les nouveaux modèles de travail sont-ils inclusifs et of- tired. Unsurprisingly, the Deloitte/LifeWorks study finds that frent-ils les outils et le soutien adéquats? more than half of senior leaders are contemplating stepping « Il est important de repenser le travail en fonction de décisions sur back from some responsibilities. le lieu et le moment où il est effectué plutôt que de faire les choses de la In addition to eroding years of service, poor mental health affects même façon, simplement dans un lieu différent », affirme Mme Hirji. tone at the top and the quality of decision-making, which can have longer-term implications for the organization, says Hirji. As a ma- Les faits ont la tête dure… terial risk and driver of performance, executive mental health and Bien sûr, les temps ont changé. De l’invasion de l’Ukraine et des well-being requires the board’s attention. chaînes logistiques rompues à l’inflation et à une récession possible Like Hirji, Hardin believes mental health drives performance. The – le tout dans le contexte d’un virus en constante mutation et de challenge for organizations is establishing new processes to monitor it. la menace croissante des changements climatiques – il n’y a pas à “Healthy people who are fulfilled socially, emotionally and s’étonner que les hauts dirigeants soient fatigués. psychologically perform better over the long term,” says Hardin. En plus, les problèmes de santé mentale affectent la qualité de “CEOs and boards need to learn how to lead with mental health. la prise de décision, ce qui peut entraîner des implications à long Performance requires mental health, and mental health requires terme pour l’organisation, explique Mme Hirji. En tant que risque practice. Organizations and leaders need to start practising.” matériel et moteur de performance, la santé mentale et le bien-être Indeed, the importance of self-care is a lesson that isn’t lost on Ford. des cadres exigent l’attention du conseil. Les organisations doivent “What I’ve learned about mental health is that you’ve got to take établir de nouveaux processus pour en assurer la surveillance. care of it,” he says. “You’re accountable to yourself, and you have « Les gens épanouis socialement, émotivement et psychologique- to own it. And I’m still working through that myself. Because what ment offrent une meilleure performance à long terme, soutien Mme people forget is that titles don’t mean anything. We’re just humans Hardin. Les cadres supérieurs et les conseils doivent apprendre com- trying to do the best we can.” DJ ment assurer un leadership en matière de santé mentale. » DJ PRASANTHI VASANTHAKUMAR is the ICD’s manager PRASANTHI VASANTHAKUMAR est directeur du of editorial content. contenu éditorial de l’IAS. Mental health resources for leaders The Mental Health Commission of Canada (MHCC) provides innovative programs and tools to support the mental health and wellness of Canadians. La Commission de la santé mentale du Canada (CSMC) offre des programmes et des outils innovateurs pour soutenir la santé mentale et le bien-être des Canadiens. KEY RESOURCES RESSOURCES CLÉS • “Manager’s Toolkit – Protecting Their Own Mental Health” and • « La trousse d’outils du gestionnaire : Diriger dans un environnement “Leading in a Hybrid Work Environment” are resources focused on de travail hybride » est une ressource qui s’adresse spécifiquement executives and leaders. aux cadres et leaders d’organisations. • “National Standard of Canada for Psychological Health and Safety • « Santé et sécurité psychologiques en milieu de travail » est une in the Workplace” is a set of voluntary guidelines, tools and norme volontaire – la première en son genre au monde – qui spécifie resources to guide organizations in fostering good mental health. les exigences d’une approche documentée et systématique pour This standard is the first of its kind in the world. maintenir un milieu de travail psychologiquement sain et sécuritaire. • “The Working Mind” is a training program that helps • « L’esprit au travail » est un programme de formation qui aide les organizations raise awareness and reduce the stigma around organisations à mieux prendre conscience des défis liés à la santé mental health challenges. mentale et à réduire les maux qui y sont associés. These resources and others can be found on the website Ces ressources et d’autres documents sont disponibles sur le site Web mentalhealthcommission.ca commissionsantementale.ca.
Ready for (almost) anything With a possible recession approaching, businesses are operating in a world of uncertainty but taking some decisive measures to prepare for the worst, Virginia Galt writes À l’aube d’une possible récession, les entreprises évoluent dans un monde incertain, mais prennent des mesures décisives pour se préparer au pire, écrit Virginia Galt AS THE MACROECONOMIC ENVIRONMENT becomes increasingly ALORS QUE L’ENVIRONNEMENT macroéconomique devient de perilous, Canadian boards of directors are stepping up their risk plus en plus périlleux, les conseils d’administration au Canada aug- oversight. They’re weighing the impact of persistent high inflation mentent leur surveillance du risque. Ils mesurent l’impact d’une in the context of other troubling trends: supply chain disruptions, inflation résolument élevée dans le contexte d’autres tendanc- labour scarcity, trade tensions, droughts and floods related to cli- es troublantes : perturbations de la chaîne logistique, pénurie de mate change, and the massive geopolitical upheaval caused by Rus- main-d’œuvre, tensions commerciales, sécheresses et inondations sia’s invasion of Ukraine. reliées aux changements climatiques et agitation géopolitique mas- It’s a daunting watch list. The workload of audit and risk com- sive causée par l’invasion de l’Ukraine par la Russie. mittees is such that some boards are now expanding their Voilà une liste de surveillance colossale. La tâche des comités com-
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mittees or forming new stand-alone risk committees, says corpo- d’audit et de risque est telle que certains conseils les élargissent rate director Don Chynoweth, who stepped down as co-chair of ou en forment de nouveaux, souligne l’administrateur de sociétés the Institute of Corporate Directors’ Calgary chapter this past June. Don Chynoweth, qui a quitté en juin dernier la coprésidence de la “That’s a trend we are starting to see. ... The risks are getting so nu- section régionale de Calgary de l’Institut des administrateurs de so- merous and so impactful,” said Chynoweth, who serves on a num- ciétés. « C’est une tendance qu’on commence à observer. Les ris- ber of boards, including the Canadian Public Accountability Board. ques sont devenus si nombreux et conséquents. » “Companies are trying to plan for the ‘what ifs’ under a whole « Les entreprises essaient de se préparer à toute une foule de bunch of different scenarios,” says Ryan Resch, chair of the ICD’s scénarios différents, explique Ryan Resch, président du conseil de la Greater Toronto Area chapter. “What if we get a recessionary hit? section régionale du Grand Toronto de l’IAS. Et si nous étions frappés What if interest rates go up significantly? What if inflation remains par une récession? Et si les taux d’intérêts augmentaient fortement? high? You can’t just downplay it and say it’s transitory,” says Resch, Et si l’inflation demeurait élevée? On ne peut pas seulement sous-es- a senior partner at Toronto-based compensation consulting firm timer les choses et dire qu’elles sont transitoires. » Southlea Group. Et si les organisations étaient forcées de couper les coûts, quelles se- And if organizations are forced to cut costs, what are the trade- raient les contreparties? Voilà les dilemmes qui se posent aujourd’hui offs? Th ese ar e th e qu andaries di rectors ar e de aling wi th no w, aux administrateurs, affirme M. Resch. « Comment, en quelque sorte, Resch said. “How do you sort of rationalize investments that you allez-vous justifier de renoncer aux investissements que vous devriez might need [in order] to address climate change with the near-term faire pour lutter contre les changements climatiques en faveur de défis challenges around profitability, or investments you might need to à court terme liés à la rentabilité ou de la nécessité de répondre à la address the tight labour markets and being able to attract and re- pénurie de main-d’œuvre et d’attirer et de garder votre personnel? » tain staff?” Telle est la « valeur ajoutée » que les administrateurs appor- This is “the value added” that directors bring to the table, par- tent, en particulier en temps d’incertitude économique, observe ticularly in times of economic uncertainty, says corporate director l’administrateur de sociétés Tim Penner, président du conseil de Tim Penner, chair of the board at natural health products compa- Jamieson Wellness, une entreprise de produits de santé naturels. ny Jamieson Wellness Inc. and a former member of the board of « Les administrateurs puisent dans leur expérience vécue dans des trustees at Toronto’s Hospital for Sick Children (SickKids). “Direc- industries non apparentées pour identifier des risques et opportu- tors draw on their experience in unrelated industries to identify nités susceptibles d’aider leurs entreprises. Il est important, ajoute- risks and opportunities that might help the company,” Penner says. t-il, que les conseils ne se mêlent pas des problèmes à court terme It’s important, he adds, that boards “not step in and meddle dont se charge l’équipe de direction. » while
management deals with short-term problems. ... It’s by stepping Se préparer à une récession back from the issue that board members can help management see Le rôle du conseil est de regarder plus loin, fait valoir M. a problem through a slightly different lens.” Chynoweth. Selon le secteur, l’inflation pourrait ne pas représent- er un si grand risque. Par exemple, une administration aéropor- Preparing for recession tuaire pourrait être à court de glycol pour dégivrer les avions en The role of the board is to look further out, said Chynoweth. Depending hiver. « Nous demandons à nos équipes de direction si elles ont on the sector, inflation might not be the biggest risk facing the com- songé à un produit dont elles pourraient manquer et si elles en pany. An airport authority, for instance, might not have enough glycol ont suffisamment pour les deux ou trois années à venir. Le fait on hand to de-ice the planes through the winter. “We ask our man- d’avoir en main des inventaires plus importants qu’auparavant agement teams, ‘So what are the things that you have never thought fait partie de la nouvelle donne. » of being in short supply, and have you got enough for the next two or Fin août, lorsque la Banque Royale du Canada a publié ses three years in inventory should there be a hiccup?’ It’s a new game, revenus du troisième trimestre, ses résultats étaient solides, having larger inventories than we have had in decades, perhaps.” les comptes d’épargne des consommateurs étaient sains et les At the end of August, when Royal Bank of Canada reported its taux de chômage étaient bas, explique le chef de la direction third-quarter earnings, corporate balance sheets were strong, con- David McKay. Mais avec l’inflation qui atteint ses niveaux les sumer savings accounts were healthy and unemployment rates plus élevés depuis des décennies, les grandes banques ont acc- were low, said CEO David McKay. But with inflation at its highest ru leurs prévisions de pertes sur les emprunts pour se protéger level in decades, the major banks increased loan-loss provisions d’une possible récession. Les épiceries se disputaient des con- as a buffer against a possible recession. Grocers were competing sommateurs soucieux de leur budget à coup de promotions et for budget-conscious consumers with promotions and discount de prix modiques et les entreprises d’énergie tiraient parti de brands, and energy companies took advantage of the oil price bo- la montée en flèche des prix du pétrole pour rembourser leurs nanza to pay off debt. Private equity firm Onex Corp. reported that dettes. La société d’investissement Onex a indiqué qu’elle tra- it was working closely with its portfolio companies on the develop- vaillait en étroite collaboration avec des sociétés de portefeuille ment of “action plans” for controlling costs and driving efficiencies. au développement de ‘plans d’action’ pour contrôler les coûts RBC’s profit of $3.6-billion for the quarter ended July 31, 2022, et susciter des rendements. declined by 17 per cent from the corresponding period a year ear- Les profits de RBC de 3,6 milliards $ pour le trimestre se termi- lier, due, in large measure, to volatile capital markets and “a pru- nant le 31 juillet 2022 ont diminué de 17 pour cent par rapport à dent” boost in loan-loss reserves. The number of impaired loans la même période l’an dernier, en raison dans une large mesure de actually fell in the third quarter. “In an uncertain world, we con- marchés boursiers instables et d’une hausse « prudente » des ré- tinue to operate from a position of strategic and financial strength,” serves pour prêts irrécouvrables. Le nombre de prêts douteux a en McKay said in an earnings conference call. fait diminué au troisième trimestre. « Dans un monde incertain, “While inflationary pressures appear to be peaking — [the Con- nous continuons de profiter d’une position stratégique et d’une so- sumer Price Index eased to 7.6 per cent in July, down from June’s lidité financière », soutient M. McKay. 39-year high of 8.1 per cent] — we expect aggressive monetary pol- « Même si les pressions inflationnistes semblent atteindre un icy to continue as central banks try to rein in demand-driven infla- sommet, poursuit-il, nous nous attendons à ce que soient main- tion by raising borrowing costs. This pushes us even closer to the tenues des politiques monétaires agressives alors que les banques end of an economic cycle. These factors alone would not likely drive centrales tentent de contenir une inflation soutenue par la demande a severe downturn. That would also require higher unemployment. en augmentant les coûts des emprunts. Cela nous rapproche d’en- And we believe the current job market is a differentiating factor rel- core plus près de la fin d’un cycle économique. À eux seuls, ces ative to the beginning of prior downturns,” he said. secteurs ne sont pas susceptibles de susciter une crise grave. Cela Still, Bank of America Corp. analyst Ebrahim Poonawala elicited nécessiterait aussi un fort taux de chômage. Et nous pensons que a candid response when he asked McKay for “a perspective in terms le marché actuel de l’emploi est un facteur de différentiation par of your downside scenario and how quickly things could get ma- rapport au début de crises précédentes. » terially worse.” McKay said he couldn’t predict with any certainty Tout de même, l’analyste de Bank of America Corp. Ebrahim what might happen. “The operating word is uncertainty. And from Poonawala a obtenu une réponse franche lorsqu’il a demandé à M. the investment community, to the CEO community, to the govern- McKay « une perspective sur votre propre scénario de crise et com- ment, all stakeholders in our economy are struggling to read all of ment les choses pourraient matériellement empirer ». M. McKay a these forces at play at once right now.” répondu qu’il ne pouvait prédire avec certitude comment les choses pourraient se passer. « Le mot clé est l’incertitude. Et qu’il s’agisse Squeezed profits de la communauté des investisseurs, de celle des chefs de la di- Loblaw Cos. Ltd. and Metro Inc. report that soaring grocery prices rection ou du gouvernement, toutes les parties prenantes de notre have driven shoppers to their discount stores and brands. Loblaw économie se débattent pour interpréter l’ensemble des forces qui said it has been pushing suppliers to justify their higher prices and, sont en jeu à l’heure actuelle. »
in reporting results for the quarter ended June 18, 2022, chief finan- Un rétrécissement des marges cial officer Richard Dufresne told analysts that some relief was in Loblaw Cos. Ltd. and Metro Inc. rapportent que les prix croissants sight. “Commodity prices are coming off their highs, some freight des produits d’épicerie ont poussé les clients vers les magasins et costs are coming down, and supply chain issues are normalizing.” les marques de rabais. Loblaw dit avoir exigé de ses fournisseurs Metro CEO Eric La Flèche said long-term investments in au- qu’ils justifient la hausse de leurs prix et, en publiant les résultats tomated distribution centres “will enable us to add capacity, de l’entreprise pour le trimestre se terminant le 18 juin 2022, le chef increase productivity and improve services to stores, while ben- de la direction financière Richard Dufresne a confié aux analystes efiting from lower operating expenses.” In the meantime, how- qu’il y avait de l’espoir à l’horizon. « Les prix des produits de base ever, Metro is managing in an environment of higher wage and ne sont plus aussi élevés, certains frais de transport sont en train de supply costs. baisser et les problèmes relatifs à la chaîne logistique sont en voie “We are renewing labour contracts at higher increases than we d’être aplanis. » are used to,” and overtime is up, because of industry-wide labour Le chef de la direction de Metro Éric La Flèche affirme que les in- shortages. That’s just the cost of doing business in the current en- vestissements à long terme dans les centres de distribution autom- vironment, La Flèche said in his third-quarter earnings call. Met- atisée « nous permettront d’ajouter de la capacité, d’accroître la ro is also trying to cushion the impact on food shoppers to the productivité et d’améliorer les services aux magasins, tout en prof- extent that it can. “We are absorbing some of those [supply] costs, itant de dépenses d’exploitation plus faibles. Entretemps, toutefois, not passing on some of those cost increases” to customers, whose Métro évolue dans un environnement de salaires et de coûts d’ap- household budgets are stretched. “Consumers are feeling it, a lot provisionnement plus élevés ». of consumers are on budgets and fixed income, and we work re- Metro est à renouveler ses conventions collectives à un coût plus ally hard ... to create value.” This food pricing strategy is offset to élevé qu’auparavant et le travail supplémentaire est en hausse en some extent by strong pharmacy sales, “but if this high inflation- raison de pénuries de main-d’œuvre à l’échelle de l’industrie. Tel ary and high prices environment continues, it will continue to put est le prix de faire des affaires dans l’environnement actuel, expli- pressure on margins.” que M. La Flèche. Metro tente également autant que possible d’en ƒeaders in„ Executive Compensation Corporate Performance Measurement Shareholder Engagement Board Effectiveness For 15 years, Hugessen Consulting has supported directors and owners to make the right decisions across an extensive range of business situations. specially in these turbulent times of C1 , count on our people to apply their deep experience, rigorous financial analysis, and sound €udgement to develop tailored advice on executive compensation and related governance matters. Independent insight. For confident decisions. hugessen.com Toronto Calgar Montreal ICD.CA | 35
Stretched consumers atténuer l’impact pour ses clients. « Nous absorbons certains de ces Buzz Hargrove, former president of the Canadian Auto Workers coûts [d’approvisionnement] sans les refiler aux consommateurs, union and retired executive director of the Centre for Labour Man- dont les budgets sont serrés. Et nous travaillons très fort à créer de agement Relations at Ryerson University (now known as Toronto la valeur. Mais si cet environnement hautement inflationniste se Metropolitan University) says “smart employers” recognize that maintient, il exercera beaucoup de pression sur nos marges. » their employees’ standard of living has been eroded by inflation Des consommateurs serrés and are raising pay. “You’ve got to be on top of things to make sure you don’t lose your good people.” But, he predicts, Canada is head- Buzz Hargrove, ancien président des Travailleurs unis de l’auto- ed for a lot more labour disruption in the coming months, partic- mobile et directeur à la retraite du Centre for Labour Manage- ularly in the public sector organizations where governments are ment Relations de l’Université Ryerson (maintenant connue sous imposing wage caps. le nom d’Université métropolitaine de Toronto), explique que les Canadians are struggling with the higher cost of everything. « employeurs intelligents » reconnaissent que le niveau de vie “I have a good pension, it has inflation protection in it, but I am de leurs employés a été affaibli par l’inflation et ils augmentent shocked when I go to the butcher shop and see steaks for $22 or $23 leurs salaires en conséquence. « Vous devez prendre les choses en a pound,” Hargrove said. “I just shake my head and walk on by to main pour faire en sorte de ne pas perdre vos bons employés », the chicken counter.” dit-il. Mais il prédit que le Canada connaîtra néanmoins beaucoup de perturbations dans les prochains mois, en particulier chez les Battle-tested organisations du secteur public à qui les gouvernements imposent At Onex, founder, chair and CEO Gerry Schwartz offers some perspective: des plafonds salariaux. “Clearly, this global economy is going through a period of adjust- Les Canadiens font face à une hausse des prix qui affecte tous ment as it works its way through several macro-related issues. les produits et services. « J’ai un bon revenu de retraite, protégé While these transitions contribute to short-term market uncertain- contre l’inflation, poursuit M. Hargrove. Mais ça demeure un choc ty, nearly 40 years of cycle-tested experience has shown us it is pos- quand je me rends chez le boucher et que je vois des steaks à 22 sible to weather them and emerge even stronger,” he said during ou 23 $ la livre. Je secoue la tête et je me dirige vers le comptoir his firm’s second-quarter earnings call. du poulet. » In private equity, Onex is working with the operating companies L’expérience du combat in its portfolio on “value-creation plans and proactive and innova- tive strategies for mitigating the impacts of inflationary pressures Le fondateur, président du conseil et chef de la direction d’Onex, and rising rates,” added president Robert Le Blanc, whose firm at- Gerry Schwartz, offre une autre perspective. tracted more than 100 CEOs and chief financial officers to “a pro- « Il est clair que l’économie mondiale traverse une période d’ajust- ductivity and procurement council” in June. ement, alors qu’elle connaît de multiples problèmes globaux. Même The last word goes to veteran corporate director Peter Dey, a tire- si ce type de transition contribue à l’incertitude du marché à court less advocate of good governance. terme, près de 40 ans d’expérience à travers les cycles nous ont prou- Boards have upped their game, says Dey, an executive in resi- vé qu’il est possible d’y survivre et même d’en sortir plus fort. » dence at the University of Toronto’s Rotman School of Management En investissement privé, Onex travaille avec les entreprises de and chair of the board at Paradigm Capital Inc., a Toronto-based son portefeuille à des « plans de création de valeur et des stratégies independent investment dealer. He also serves on the board of Cal- proactives et innovantes afin d’atténuer les impacts des pressions gary-based Gran Tierra Energy Inc., which used higher oil profits to inflationnistes et des taux d’intérêt croissants », ajoute le président pay off its debt in the second quarter of 2022. “The mindset of that Robert Le Blanc, dont la firme a attiré plus de 100 chefs de la direc- board is long-term. We are grateful for the high energy prices that tion et chefs de la direction financière à un « conseil sur la produc- have enabled us to reconfigure our balance sheet,” says Dey. “But tivité et l’approvisionnement » tenu en juin. the issues like climate change are still forefront because we know Le dernier mot revient au vétéran administrateur Peter Dey, un in the long term those issues have to be managed.” infatigable promoteur de la bonne gouvernance, qui siège notam- The pandemic was a crash course in crisis management. “It’s one ment au conseil de Gran Tierra Energy, une entreprise de Calgary thing to manage internal crises within the operations of a business. qui a utilisé ses profits plus élevés du deuxième trimestre de 2022 . . . The pandemic was kind of an orientation process for boards to pour rembourser sa dette. deal with major global crises. In that respect, it proved to be very « L’idée de base de ce conseil est le long terme, explique-t-il. Nous constructive,” said Dey. sommes reconnaissants que les prix élevés de l’énergie nous aient “One of the other things I think most boards learned during the permis de reconfigurer notre bilan financier. Mais les enjeux comme course of the pandemic . . . was the importance of the relationship les changements climatiques demeurent au premier plan parce que of the stakeholders to the corporation” – investors, employees, cus- nous savons que ces problèmes doivent être gérés à long terme. » tomers, suppliers, community. “In dealing with inflation, I think La pandémie a été à ses yeux un cours accéléré en gestion de one of the important initiatives by the board is to sort of look crise. « La pandémie a été une sorte de processus d’orientation at
the range of stakeholders and, if it is forced to cut costs, where it pour les conseils qui ont à gérer des crises mondiales majeures. En can cut costs with the least negative impact on the company.” A ce sens, ce fut une expérience très constructive », soutient M. Dey. few recent examples illustrate his point – some of the banks giving « Une autre chose que la plupart des conseils ont apprise du- mid-year pay increases to their lower-paid employees to help with rant la pandémie, poursuit-il, fut l’importance des relations avec rising living costs; and grocers such as Metro trying to blunt some les parties prenantes. » of the impact of rising food prices. La plupart des conseils, croit-il, n’ont pas été pris au dépour- Most boards, Dey says, were not caught off guard by the spike in vu par la montée de l’inflation et des taux d’intérêt. « Certains inflation and interest rates. “There were some boards probably that d’entre eux étaient sans doute en train de pousser un soupir de were in the process of breathing a sigh of relief, having success- soulagement après avoir traversé la pandémie sans trop d’en- fully navigated through the pandemic. ... But the well-positioned combres. Mais un conseil bien positionné aurait compris qu’on board would have understood that we weren’t going to recreate n’allait pas pouvoir recréer après la pandémie le monde d’avant the prepandemic world in the post-pandemic world. Most boards, la pandémie. La plupart des conseils, je pense, ont pris le temps I think, were spending time thinking about what’s the world going de réfléchir à ce à quoi le monde allait ressembler une fois que to look like once we are successfully managing Covid? Where do we nous aurions géré la Covid avec succès. Où allons-nous nous fit into that world, and can we continue to be a sustainable business situer dans ce monde et pouvons-nous continuer d’être une en- over the long-term?” DJ treprise durable à long terme? » DJ VIRGINIA GALT, a former business and education reporter for VIRGINIA GALT, ancienne journaliste du Globe and Mail spécial- The Globe and Mail, covers legal, education and management isée en économie et en éducation, couvre les questions juridiques, issues for a number of publications. d’éducation et de gestion pour un certain nombre de publications. HOW JAMIESON TACKLED INFLATION The secret, says Jamieson Wellness chair Tim Penner, is managing Le président du conseil Tim Penner sur la stratégie de Jamieson for the short term while planning for the long term. Wellness : gérer le court terme, planifier le long terme. “Several of the people on our board do have experience managing « Bien des gens qui siègent à notre conseil ont une expérience de during inflationary times, based on the various industries and gestion en période inflationniste, selon les divers pays et industries countries where we have worked. This allowed us to ask good où ils ont travaillé. Cela nous a permis de poser des bonnes questions questions when we could see inflationary pressures rising and gave quand nous avons pris note des premières pressions inflationnistes. us great confidence in the plans management put in place. Nous en avons tiré une plus grande confiance dans les plans mis en “Several things have worked well for us. Primary among those things place par la direction. » is a sense of trust in the CEO, the CFO [chief financial officer] and the « Les choses ont bien fonctionné. D’abord, la confiance dans le chef management team. We knew they were facing challenging times, but we de la direction, le chef de la direction financière et l’équipe de cadres. also knew they were highly capable of dealing with those challenges. In Nous savions qu’ils traversaient des moments difficiles, mais nous addition, the board moved quickly on capital allocation decisions that savions aussi qu’ils étaient capables de relever les défis. Le conseil needed to be made through the heart of the crisis: temporarily holding a aussi agi rapidement pour prendre des décisions sur l’allocation more raw material inventory to manage supply chain volatility and lead- de capital qui devaient être rendues au cœur d’une crise. Nous time changes. We approved consulting fees and major capital projects avons approuvé des frais de consultation et des projets majeurs that would vastly expand our capacity to facilitate our growth for years d’investissement qui allaient élargir notre capacité de croissance dans to come. We invested in systems and process improvements to improve les années qui viennent. Nous avons investi dans nos systèmes et customer service. We worked on and approved a strategic plan that processus afin d’améliorer notre service à la clientèle. Nous avons plotted our growth plans for the future . . . approuvé un plan stratégique qui trace les voies de notre croissance. » “We evaluated M&A opportunities, resulting in the transformational « Nous avons évalué les opportunités de fusion et acquisition, ce qui acquisition of [Nutrawise Health & Beauty Corp.] and our entry into a permis notre entrée sur le marché américain – le plus important the U.S. market – the largest market for vitamins, minerals and marché du monde pour les vitamines, minéraux et suppléments. En supplements in the world. By staying in our own lane [as a board], we nous en tenant à nos prérogatives, nous avons été plus en mesure de could be of greater help to the long-term health of the business than soutenir la santé à long terme de l’entreprise que si nous nous étions by meddling in management’s lane.” mêlés des affaires de la direction. » - VG - VG
The great compensation divide No one expects workers to make as much as the CEO, but when people can’t live on what they make, boards have a duty to act, Jeff Buckstein writes K C O T S I K/ S AA Y AD N B O TI TRA S LLU I
THE FIRST WORKING DAY of almost every New Year, a story seems to circulate that says, by noon, some CEOs will have earned what their average worker will take home that year. Indeed, the ratio of executive compensation to employee wages is astronomically high in certain organizations, with some blue- chip companies in the United States paying their CEOs several thousand times the average wage of employees. The average CEO/ employee wage gap is about 670 to 1, according to the Institute for Policy Studies, a Washington-based non-profit that advocates for K progressive policies. C O In Canada, that ratio is less, but still extreme. The country’s top T S I CEOs make about 191 times the average wage of their workers, ac- K/ S cording to the Canadian Centre for Policy Alternatives. AA Y AD What can directors do about that, given today’s push for corpora- N B tions to pursue strong environmental, social and governance (ESG) O related practices, and to let stakeholders see and judge them on those TI TRA efforts? Is the widespread new focus on ESG the catalyst that direc- S tors need to correct what appears to be a major social injustice? LLU I
Low pay, high risk should be transparent about executive and Early in the pandemic, there was a sudden and widespread reali- employee pay, and connect bonuses to the zation that grocery workers stocking shelves were, in fact, essential organization’s success at meeting various workers. But it also became clear that many were paid at such a low ESG and sustainability-related targets that rate, they weren’t earning enough to cover their rent and basic costs. the company has set, Hatanaka said. To do When people are not paid a living wage, corporations are “headed so, he added, it’s more important than ever straight for a huge chasm,” said Roger Martin, professor emeritus of to have several independent board members strategic management at the University of Toronto’s Rotman School with expertise in corporate compensation. of Management. “Directors, if they were really responsible, would The board’s compensation committee say ‘We’ve got to be a force in the opposite direction.’” needs to work closely with management to When it comes to compensation, low-end wages are the most enshrine the principles that ensure fairness significant problem facing directors of corporations. The wage gap at various levels within the firm, while also of hundreds or thousands of times salary between executives and maintaining competitiveness in the compa- workers is “a red herring” Martin said. “It’s a ratio for journalists. ny’s sector. The appropriate compensation It sounds horrible, but it’s not. If we took executive compensation structure should include not just the salary down, but didn’t raise wages of the low end, I wouldn’t say the component, but other variables, such as ex- world has gotten one iota better. tended health benefits, vacation time, and “The real problem is [pay] that people can’t live on. I think there pension contributions, said Hatanaka, who is a potential corporate crisis coming of society revolting over that.” also serves as vice-chair of the electronic So if directors want an environment where their company can suc- trading company ICE NGX Canada Inc. ceed, they need to realize low pay is a “flash point” and do some- Good board governance also means en- thing about it, he said. suring that executive compensation is as Studies have shown that when companies give workers precar- transparent as possible and in line with ious jobs with irregular hours, low hourly pay, no benefits and no amounts paid across the sector in which training, this results in an environment where there is poor quality the company competes, said Hatanaka, work, including more errors and weak customer service, because who noted that the compensation gap in employees have too many worries and insecurities, he said. some sectors is more acute than in others. In contrast, “If you pay them well, they do a much better job, For example, the health care and universi- make you much more productive and much more profitable,” said ty sectors in Canada feature a relatively egal- Martin, who noted that directors in the United States are currently itarian distribution of compensation that presiding over 53 million low-wage jobs, in which the median take is disclosed for a wide range of executives, home pay is under US$18,000 annually. compared with the financial services sector, To try to correct that inequity, board members need to challenge where only the very top earners have their executives to make sure they pay workers a living wage. Where compensation publicly disclosed, he said. shift work is involved, employees should be receiving their sched- ules well in advance. Workers in retail are sometimes assigned their Pulling back the curtain shifts just the day before, creating disruption for families – espe- Pay equity and transparency are hallmarks cially single mothers, Martin said. of being a good business, said Allison Ven- “There are all sorts of economic studies that say what a living ditti, the founder of Moms at Work, an edu- wage is, and as a director I’d want to know ‘What employees are be- cation, advocacy and community-building low that? And what is our plan to get them up to a living wage?’ If organization in Toronto that helps women directors are not doing that, they are hastening the crisis,” he said. network for job success. But while executive pay is, in many ju- Board awareness risdictions, legally required to be disclosed, Demographics and technology are putting a bigger spotlight on the there needs to be greater disclosure about wage gap. Younger generations, for instance, have “seen the Inter- why executives make what they do. Boards net democratize information [and] flow through social media in need to set expectations on what they think a way that’s given them broader access to the environmental and is realistic and meaningful for executive com- social issues of the day,” said Bill Hatanaka, who serves as chair of pensation. For example, “People are taking Ontario Health, a provincial agency for co-ordinating health care. great issue with golden parachutes,” those “They want their firms to demonstrate a social conscience and to massive payouts top executives get when they follow through on that commitment in a meaningful way.” leave a company, said Venditti, who is also a For an organization to be considered socially responsible today, it career coach and human resources expert.
‘IF YOU PAY THEM WELL, THEY DO A MUCH BETTER JOB, MAKE YOU MUCH MORE PRODUCTIVE AND MUCH MORE PROFITABLE.’ —ROGER MARTIN, PROFESSOR EMERITUS OF STRATEGIC MANAGEMENT AT THE ROTMAN SCHOOL OF MANAGEMENT Moreover, she said, “the boards themselves are often not reflec- third-party ESG ratings systems that enable tive of the communities that these organizations serve because of managers of funds to say ‘We’re only going lack of diversity, so that also becomes part of the problem.” to invest in companies that have this rating Although the disclosure rules in Canada have not been updated or above,’” he said. “I like pressure from in a long time, proxy advisers are busy assessing compensation dis- investors. I like pressure from consum- closure for executives on both a qualitative and quantitative basis, ers. I think it’s great when consumers say said Lisa Colnett, chair of the human resources and compensation ‘You’ve got to assure me that you’re being committees at Parex Resources Inc. and Northland Power Inc. sustainable, and you’ve got to subscribe to Directors must, therefore, go “above and beyond the minimum science-based targets’ or whatever specifics when it comes to compensation disclosure and analysis. We have to they wish.” provide relevant information, so that shareholders and other stake- Smart and responsible directors will holders can assess how we approach executive pay,” she said. try to get their company to act early on A company cannot succeed if it fails to earn the confidence or such matters. “They see where the puck is support of its stakeholders, including its investors, customers, pol- going. They should be saying to manage- icy makers and the local community, Colnett said. ment ‘What issues are really relevant to us “We’ve seen a broadening, beyond financial returns, of what is [where we can move to] the front of the now important in the eyes of the board of directors. This assess- queue?’” Martin said. ment now includes ESG issues, and taking care in the communities Directors should be getting their compa- where they operate,” she said. ny to commit to paying a living wage, what- ever that amount is for the region in which Equitable and fair it operates, and to be on top of work-life ESG also gives directors the opportunity to add incentive-related balance issues, such as providing sufficient performance measurements around both executive and employ- advance notice for shift work so that peo- ee pay, and to ensure that such incentives are consistently applied ple’s lives are not disrupted, he added. across the whole organization. “Executive pay targets need to vary As more jurisdictions put legislation in and include ESG metrics that are relevant in a meaningful way,” place for pay equity, “it’s going to become Colnett added. very hard for companies to explain away an Directors have a responsibility “to ensure that equitable and fair enormous multiplier for executive compen- pay practices are being applied by management across the whole sation compared to regular employees, and company in the communities where we operate,” she said. “We also its impact on the bottom line,” Venditti said. have to consider the compensation structure necessary to attract, “There has to be a tie-in as to how we value support and retain key talent.” different members of our organization, and a Board compensation committees can break the wage-gap cycle realization that the CEO and executive team by carefully comparing their organization’s pay structure to peer are also just members of the organization.” DJ companies, as well as to the jurisdiction at large in which it oper- ates, Colnett said. JEFF BUCKSTEIN is an Ottawa-based There is a long way to go before pay inequity is effectively ad- freelance business writer with a CPA, CGA dressed, but the growing scrutiny of ESG practices is a helpful de- designation. He writes about personal velopment, says Rotman’s Roger Martin. finance, accounting and other business- “I’m all for investors asking for more disclosure. I like the related issues and current events.
Explore these upcoming ICD courses. ICD is committed to providing directors with multi-faceted learning forums to advance their governance knowledge and build the necessary skills to enhance their contributions in the boardroom. Scholarship supported by: Developed with: BUSINESS SCHOOL BUSINESS SCHOOL PARTNER PROGRAMS PARTNER PROGRAMS BOARD FUNDAMENTALS BOARD FUNDAMENTALS ICD-ROTMAN ICD-ROTMAN AUDIT ENTERPRISE BOARD DYNAMICS NFP PROGRAM. COMMITTEE RISK OVERSIGHT FOR EXECUTIVES. EFFECTIVENESS. FOR DIRECTORS. ed trademark of Royal Bank of Canada. MAXIMIZE YOUR IMPACT IN THE BETTER SERVE YOUR NOT-FOR-PROFIT BEYOND THE TRADITIONAL ROLE OF NAVIGATING THE MODERN BOARDROOM AND ITS MISSION egister COMPLIANCE OVERSIGHT RISK LANDSCAPE Better understand the boardroom dynamics, build Identify best practices in governance while Learn about the intricacies of key relationships, Acquire a deeper understanding of the board’s stronger alignment and improve organizational developing tangible skills that can be applied emergingissues and the committee’s role in role and how to participate in the risk oversight decision making amongst boards and immediately. enterprise risk. process constructively. management teams. ® [The RBC Foundation] is a rUsed under license. ONLINE October 12, 2022 ONLINE October 28, 2022 ONLINE October 18, 2022 ONLINE November 22, 2022 APPLY BY: September 29, 2022 APPLY BY: October 3, 2022 APPLY BY: September 27,2022 APPLY BY: November 1, 2022 A limited number of scholarships are available. Sponsored by: ISSUES OVERSIGHT ISSUES OVERSIGHT BOARD FUNDAMENTALS DIRECTOR EFFECTIVENESS DIGITAL BOARD HUMAN RESOURCE & CHAIRING TRANSFORMATION OVERSIGHT OF COMPENSATION COMMITTEE BOARDS. FROM THE BOARDROOM. SOCIAL ISSUES. EFFECTIVENESS. ADD STRATEGIC VALUE TO THE CONNECTING SOCIAL ISSUES AND OPTIMIZE THE BOARD’S UNDERSTANDING STRATEGIES FOR LEADING HIGHLY DIGITAL TRANSFORMATION PROCESS STRATEGY IN THE BOARDROOM OF HUMAN CAPITAL OVERSIGHT EFFECTIVE BOARDS WHILE FULFILLING THE BOARD’S Acquire practical insights and a greater Understand the considerations of talent Learn how to use forward-thinking strategies OVERSIGHT DUTIES understanding of a board’s role in oversight of management, CEO, succession planning and to engage and empower your board members Understand the board’s role in establishing the social issues. executive compensation, as well as increased scrutiny to achieve higher levels of performance and digital transformation vision, ambition and roadmap. of these issues by stakeholders. contribution. ONLINE November 23, 2022 ONLINE November 17, 2022 ONLINE October 19, 2022 ONLINE November 17, 2022 APPLY BY: November 2, 2022 APPLY BY: October 27, 2022 APPLY BY: September 28,2022 APPLY BY: October 27, 2022 FOR THE FULL RANGE OF COURSES INCLUDING THE ICD-ROTMAN DIRECTORS EDUCATION PROGRAM, VISIT ICD.CA/CALENDAR NOT SURE WHICH COURSE IS THE RIGHT FIT FOR YOU? CALL 416.593.3349 FOR A PERSONAL CONSULTATION.
Explore these upcoming ICD courses. ICD is committed to providing directors with multi-faceted learning forums to advance their governance knowledge and build the necessary skills to enhance their contributions in the boardroom. Scholarship supported by: Developed with: BUSINESS SCHOOL BUSINESS SCHOOL PARTNER PROGRAMSPARTNER PROGRAMSBOARD FUNDAMENTALS BOARD FUNDAMENTALS ICD-ROTMANICD-ROTMANAUDIT ENTERPRISE BOARD DYNAMICS NFP PROGRAM.COMMITTEE RISK OVERSIGHT FOR EXECUTIVES. EFFECTIVENESS. FOR DIRECTORS. ed trademark of Royal Bank of Canada. MAXIMIZE YOUR IMPACT IN THE BETTER SERVE YOUR NOT-FOR-PROFIT BEYOND THE TRADITIONAL ROLE OF NAVIGATING THE MODERN BOARDROOMAND ITS MISSIONegisterCOMPLIANCE OVERSIGHT RISK LANDSCAPE Better understand the boardroom dynamics, build Identify best practices in governance while Learn about the intricacies of key relationships, Acquire a deeper understanding of the board’s stronger alignment and improve organizational developing tangible skills that can be applied emergingissues and the committee’s role in role and how to participate in the risk oversight decision making amongst boards and immediately.enterprise risk. process constructively. management teams. ® [The RBC Foundation] is a rUsed under license. ONLINEOctober 12, 2022ONLINEOctober 28, 2022ONLINE October 18, 2022 ONLINE November 22, 2022 APPLY BY: September 29, 2022APPLY BY: October 3, 2022APPLY BY: September 27, 2022APPLY BY: November 1, 2022 A limited number of scholarships are available. Sponsored by: ISSUES OVERSIGHTISSUES OVERSIGHTBOARD FUNDAMENTALS DIRECTOR EFFECTIVENESS DIGITAL BOARD HUMAN RESOURCE & CHAIRING TRANSFORMATION OVERSIGHT OF COMPENSATION COMMITTEE BOARDS. FROM THE BOARDROOM.SOCIAL ISSUES.EFFECTIVENESS. ADD STRATEGIC VALUE TO THE CONNECTING SOCIAL ISSUES AND OPTIMIZE THE BOARD’S UNDERSTANDING STRATEGIES FOR LEADING HIGHLY DIGITAL TRANSFORMATION PROCESS STRATEGY IN THE BOARDROOMOF HUMAN CAPITAL OVERSIGHT EFFECTIVE BOARDS WHILE FULFILLING THE BOARD’S Acquire practical insights and a greater Understand the considerations of talent Learn how to use forward-thinking strategies OVERSIGHT DUTIESunderstanding of a board’s role in oversight of management, CEO, succession planning and to engage and empower your board members Understand the board’s role in establishing the social issues. executive compensation, as well as increased scrutiny to achieve higher levels of performance and digital transformation vision, ambition and roadmap.of these issues by stakeholders.contribution. ONLINENovember 23, 2022ONLINENovember 17, 2022ONLINE October 19, 2022 ONLINE November 17, 2022 APPLY BY: November 2, 2022APPLY BY: October 27, 2022APPLY BY: September 28, 2022APPLY BY: October 27, 2022 FOR THE FULL RANGE OF COURSES INCLUDING THE ICD-ROTMAN DIRECTORS EDUCATION PROGRAM, VISIT ICD.CA/CALENDAR NOT SURE WHICH COURSE IS THE RIGHT FIT FOR YOU? CALL 416.593.3349 FOR A PERSONAL CONSULTATION.
ICD DIRECTORS ON THE MOVE DIRECTORS ON THE MOVE The ICD would like to congratulate the following members on their recent board appointments Not-for-Profit Ray Williams, ICD.D Len Rhodes, ICD.D Martha Durdin, ICD.D Jill Angevine, ICD.D Lindalee Brougham, DIRECTOR CHAIR DIRECTOR DIRECTOR ICD.D INSTITUTE FOR ALBERTA GAMING, 8TWELVE FINANCIAL ERO COPPER CORP. DIRECTOR RESEARCH ON LIQUOR AND CANNABIS TECHNOLOGIES INC. CRAIGDARROCH CASTLE PUBLIC POLICY COMMISSION Energy & Power HISTORICAL MUSEUM Education Mark Podlasly SOCIETY Denise Amyot, ICD.D Finance Dudley Maseko, ICD.D DIRECTOR DIRECTORS Kathryn Pollack, ICD.D GOVERNOR HYDRO ONE Peter Dinsdale, ICD.D FORUM FOR INTERNA- VICE CHAIR CARLETON UNIVERSITY DIRECTOR TIONAL TRADE TRAINING CONEXUS CREDIT Healthcare CANADIAN OLYMPIC UNION Avanthi Goddard, ICD.D Dave Wattling, ICD.D COMMITTEE Government AUDIT AND RISK COM- DIRECTOR Kathryn Pollack, ICD.D Anita Stefan, ICD.D MITTEE MEMBER GEORGIAN BAY Gave Lindo CHAIR DIRECTOR WILFRID LAURIER GENERAL HOSPITAL DIRECTOR PUBLIC SERVICE DUCA FINANCIAL UNIVERSITY TO LIVE COMMISSION SERVICES CREDIT Marilyn Brennan, ICD.D UNION LTD. Gary Rose. ICD.D DIRECTOR Art Leitch, ICD.D Anar Shamji Popatia, CHAIR ST. BONIFACE HOSPITAL CHAIR ICD.D Deepak Khandelwal, DURHAM COLLEGE OAKVILLE HOSPITAL AUDIT COMMITTEE ICD.D Denise Amyot, ICD.D FOUNDATION MEMBER DIRECTOR Kevin Magee, ICD.D DIRECTORS ROYAL CANADIAN HOMEEQUITY BANK TRUSTEE HÔPITAL MONTFORT George Long, ICD.D MOUNTED POLICE BROCK UNIVERSITY DIRECTOR Darlene Hyde, ICD.D Sebastien Beauchamp, INSTITUTIONAL LIMITED Stan Magidson, ICD.D CHAIR Metals & Mining ICD.D PARTNERS ASSOCIATION CHAIR STABILIZATION CENTRAL Glenn Mullan, ICD.D DIRECTOR CANADIAN SECURITIES CREDIT UNION CHAIR HEALTHPRO PROCURE- Robin Cardozo, ICD.D ADMINISTRATORS AZIMUT MENT SERVICES INC. CHAIR Greg Clark, ICD.D EXPLORATION INC. SOULPEPPER THEATRE Brian Brown DIRECTOR Bill Baines, ICD.D DIRECTOR LOCAL INVESTING YYC Zoya Shashkova, ICD.D DIRECTOR Florence Carey, ICD.D MANITOBA AGRICULTUR- DIRECTOR HEALTHPRO PROCURE- DIRECTOR AL SERVICES CORP. Oil & Gas EXCELLON MENT SERVICES INC. IMAGINE CANADA Chandra Henry, ICD.D RESOURCES INC. Avanthi Goddard, ICD.D DIRECTOR Cannabis products Paul Gibson, ICD.D AUDIT COMMITTEE WHITECAP Anna Ladd-Kruger, Glenn Solomon, ICD.D DIRECTOR MEMBER RESOURCES INC. ICD.D DIRECTOR JANE GOODALL CORRECTIONAL CHAIR GABY INC. INSTITUTE CANADA SERVICES CANADA Paul Baay, ICD.D NOVA MINERALS LTD. DIRECTOR Insurance Scott Baldwin, ICD.D Ray Block, ICD.D SOUTHERN Anna Ladd-Kruger, Bernard Lord DIRECTOR DIRECTOR ENERGY CORP. ICD.D CHAIR MANITOBA FILM & MUSIC WORKERS COMPEN- DIRECTOR CANADIAN LIFE AND SATION BOARD OF Technology SILVERCREST HEALTH INSURANCE Darcy Mykytyshyn, ALBERTA Lisa Skakun, ICD.D METALS INC. ASSOCIATION ICD.D DIRECTOR DIRECTOR Bonnie Andriachuk, NANO ONE Guy Elliott, ICD.D Trent Fraser, ICD.D WESTERNER PARK ICD.D MATERIALS CORP. DIRECTOR DIRECTOR DIRECTOR NOVA ROYALTY CORP. SGI CANADA PUBLIC SERVICE Priya Patil, ICD.D PENSION PLAN BOARD DIRECTOR Carol Willson, ICD.D IVANHOE ELECTRIC INC. DIRECTOR SEABRIDGE GOLD Send your board appointment publication requests to: Sheldon Mahabir, Director of Member Engagement, [email protected]
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In his latest book, Innovation in Real Places, author Dan Breznitz describes Canada as a ‘morbidly fascinating paradox’ because it has every- thing it needs to suc- ceed but keeps falling short. He suggests ways to boost our innovation potential.
RECOMMENDED READING BY Shirley Won Why Canada lags at innovation We have to stop looking to Silicon Valley as the model for our success, argues innovation expert DAN BREZNITZ CALIFORNIA’S SILICON VALLEY has be- should instead focus on their competitive going to have an improved life, growth come the holy grail of innovation that many advantages and consider other models that and sustainability without innovation. The communities seek to emulate. The model can lead to more local jobs and equita- problem is that people often equate innova- conjures up images of venture capital (VC) ble wealth. Director Journal’s Shirley Won tion with new gadgets, and a specific mod- helping to mint new tech tycoons through asked Breznitz why innovation is misun- el. It’s Silicon Valley or bust. But innovation an eye-popping Nasdaq stock listing or a big derstood, why the Silicon Valley strategy has is not the same as invention, and conflating sale. But Dan Breznitz, chair of innovation problems, and how Canada can overcome its the two is wrong and dangerous. studies at the University of Toronto’s Munk poor innovation record. School of Global Affairs and co-director of Why is there confusion between its Innovation Policy Lab, warns of the fol- What was the motivation for writing innovation and invention? ly of trying to copy this high-tech vision for this book? Invention is coming up with new ideas. economic growth. In his book Innovation in It was out of frustration about the public Innovation is putting new ideas into reali- Real Places: Strategies for Prosperity in an discussion and debate about innovation. ty and across all production stages – from Unforgiving World, he argues that regions It’s an important issue because we are not first-to-the-world product and services, to
‘INVENTION IS COMING UP WITH NEW IDEAS. INNOVATION IS PUTTING NEW IDEAS INTO REALITY AND ACROSS ALL PRODUCTION STAGES.’ making them better and cheaper. Confu- stock options or stocks. If the company goes suppliers in semiconductor fabrication and sion arises partly from an obsession with public on the Nasdaq or somebody buys it, created a huge number of jobs for people techno-fetishism, or cult of the new. The they become instant billionaires instead of with different skills. VC model is also enticing because of sto- just millionaires. But the other 85 per cent ries about how poor students became the of the Israeli population doesn’t have a tick- Why do you describe Canada as a ‘mor- world’s richest people. It’s more interesting et for that train of growth. So you have mas- bidly fascinating paradox’ when talking to talk about Elon Musk or Bill Gates than sive inequality, and Tel Aviv has become the about its poor innovation reputation? explain that it took over 40 years and mil- most expensive city to live in on Earth. We have everything needed to succeed in lions of engineers to improve video com- innovation. We have the world’s most edu- pression so that we could have Zoom meet- Taiwan, once known for making cated labour force. Our research infrastruc- ings that changed lives during the Covid-19 cheap toys, is also an innovation ture, especially public research, punches pandemic. It was not that somebody thought leader with government support. above its weight with inventions that could of the idea of teleconferencing. How does its model differ? turn into important industries, technol- Taiwan wanted to get involved in the semi- ogies and products. But we can’t seem to Israel has become an innovation conductor industry but couldn’t compete turn this intellectual and invention poten- powerhouse with government help and against cutting-edge innovation. But its tial into innovation growth. Median wages Silicon Valley-style venture capital. industries were good at making cheap have been stagnant since 1978. Productivity It has more Nasdaq listings than any electronic toys, which need small, but con- has been stagnant. Within the global sys- other country outside the United States. stantly changing semiconductors. Through tem of production, we have also become What’s the problem? experimentation, the focus turned to cre- less sophisticated. For example, we are Israel has become Silicon Valley on ste- ating pure-play foundries. The idea was good at taking minerals, such as cobalt, out roids. The only thing that works is startups, to create a company to make chips from of the ground, but not in refining or using which means stagnant productivity and designs by other companies. That’s how it to build products like batteries to power wage growth in other sectors. You have 10 Taiwan Semiconductor Manufacturing Co. electric vehicles. Instead, minerals go to to 15 per cent of the population – the top became the most innovative company – not China, the U.S., and Europe, which make research-and-development [R&D] engi- in new chips, but in chip fabrication. Since them into high added-value products that neers, their financiers, lawyers and maybe the 1980s, we now have supply chains with generate massive profits. We like to think a few celebrity chefs — earning salaries that industries that fit into four different stages of ourselves as part of the Group of Seven are equal to Silicon Valley. Those involved of the global production process. In Tai- [G7] advanced economies, but we look like in startups basically have lottery tickets in wan’s case, it also created an ecosystem of a third-world country when it comes to
RECOMMENDED READING In the latest federal budget, the Minister of Finance [Chrystia Freeland] noted that we have a problem with innovation and pro- ductivity in the business sector, and that our policy should focus on private-market failure. For that reason, the government will establish an innovation agency mod- elled on countries such as Finland, Taiwan and Israel. It will provide direct funding to companies, and implement policies that will target all industry sectors in Canada and across all stages of production. What advice can you give Canada’s communities to achieve innovation- based growth? First, figure out what you want to look like in 15 or 20 years. What kind of companies do you want, and where do they sit in the global system of different stages of produc- tion? Once you know what industries you want, you can devise a strategy. It might be useful for cities such as Toronto, Van- couver and Montreal to imitate Israel and Silicon Valley, but most of Canada, which is resource rich, [has] different industries. Like Finland or Taiwan, a focus on different production stages might be a better model. It might be in forestry or critical minerals, where you can employ more people and have a long-term competitive edge. How necessary is government intervention for Canadian innovation? You can’t expect businesses, especially those with high profits, to suddenly say they will fix everything in the system. A public-private partnership is needed. Otta- wa is now willing to partner with business to figure out what should be the model for technology and innovation. R&D spending 1996 – except for the current one – also Canadian companies in all sectors – from by Canada’s business sector is the lowest had a wrong vision of how innovation high-end ICT [information and communi- among the G7 nations. And we are the only works. The current government now ad- cations technologies] to forestry. In doing country in the Organization for Economic mits that there was a problem of running so, we can innovate, median wages can go Co-operation and Development [OECD] on the wrong theory on how to stimulate up, and our children will have better lives where R&D expenditures have declined innovation in the business sector. If there than we have. DJ yearly since 2001. was one country that conflated invention with innovation, it’s Canada. SHIRLEY WON is a Toronto-based free- What’s behind Canadian business lance journalist and former business and neglecting R&D spending? You are a Clifford Clark Visiting investment reporter for The Globe and Mail. We have a system where business can Economist this year at the Department She also worked as a business reporter for make a lot of profit with a lot less risk and of Finance making policy suggestions. the Montreal Gazette, covering transporta- change. And federal governments since What can we expect? tion, real estate, retail and banking.
PARTING SHOT Arctic amplification Arctic warming is worse than we thought. New research from Finland finds the North Pole has warmed nearly four times faster than the rest of the world – a significant acceleration H from oft-cited estimates that pegged the rate at double the global average. The heat is S LA especially intense in the Barents and Kara seas, which the study estimates are warming P S N seven times as fast as the rest of the planet. U / Rising temperatures at the top of the world have implications for us all. The region’s N melting permafrost releases trapped greenhouse gases to rapidly escalate global MAN E warming. Temperature differences between the tropics and the poles also lead to more extreme weather events. This past summer alone, Europe baked in record-breaking heat R HAF E waves, South Korea saw its heaviest rainfall in more than 100 years, a third of Paki- D stan has been submerged by monsoons and Mexico was left parched by drought. New XAN findings that Greenland’s melting ice sheet will raise sea levels by at least 27 centimetres Y ALE –no matter what climate action is taken – is especially sobering news for the nearly 600 H B million people who live by the world’s coastlines. - Prasanthi Vasanthakumar RAP G O T O H P
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