Press Release

Canadian CEO Pay Jumps Nearly 12 Percent as Shareholder Support Remains Strong

TORONTO (October 14, 2026) – ISS-Corporate, a leading provider of robust SaaS and expert advisory services to companies globally, today released the results of an analysis of CEO pay changes and shareholder support for CEO pay packages at companies in the S&P/TSX index during the 2026 proxy season. The report found that median CEO compensation increased by nearly 12 percent year-over-year in fiscal (FY) 2025, and that this rise in median pay was accompanied by strong shareholder support for executive pay packages.

Median CEO compensation among S&P/TSX Composite issuers increased by 11.8 percent in FY 2025, the analysis found, marking the largest annual increase since 2022 and significant change from more modest increases in 2023 and 2024. The rise was driven primarily by higher long-term incentive awards, which represented approximately 60 percent of median total CEO pay, consistent with boards’ increased emphasis on performance-based compensation and long-term retention. Base salary accounted for a relatively small portion of total compensation. Median CEO pay for FY 2025 stood at approximately CA$6 million.

The elevated pay increases were met with investor approval, the study found, as shareholder Say-on-Pay support reached 96 percent in the 2026 proxy season and only a single company saw its advisory vote on executive compensation fail. The results reinforce the resilience of Say-on-Pay outcomes across the Canadian market and suggest investors did not view higher compensation levels or evolving incentive practices as warranting widespread opposition. Despite the high overall support, 12 issuers received less than 80 percent shareholder approval, indicating that investors continued to express their concerns regarding compensation practices at a meaningful subset of companies.

ESG metrics remained a common feature of executive incentive plans among Canadian issuers, contrasting with sharp declines among U.S. companies. In FY 2025, approximately 64 percent of S&P/TSX Composite companies incorporated at least one ESG metric into their executive incentive plans, down from peak adoption in 2023 (69 percent of companies).  Despite this small decline, incorporation of at least one ESG metrics by Canadian issuers was significantly higher than in comparable U.S. markets, where just 35 percent of S&P 500 companies and 21 percent of the Russell 3000 (excluding S&P 500) incorporated an ESG metric.  The moderation in more recent years may indicate a shift toward fewer, more material metrics with clearer links to strategy, financial, and business performance rather than a reduction in focus on sustainability-related objectives.

Chan Pedris, Managing Director at ISS-Corporate, said: “Support for executive compensation programs remains resilient, even as CEO pay increases and compensation structures continue to evolve. The findings underscore that investors remain focused on pay-for-performance alignment, equity plan dilution, and transparent disclosure, reinforcing the importance of compensation programs that are clearly linked to long-term value creation.”

To download the full report, please click here.

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