Gerry McCaughey, former president and chief executive officer of CIBC, speaks during their annual general meeting in Montreal, April 24, 2014. Tucked into the bank’s proxy circular is the disclosure that CIBC will continue to pay Mr. McCaughey and Richard Nesbitt, its former chief operating officer, handsomely after their retirement dates – $25-million between the two men.Christinne Muschi/Reuters
No such incentive to stay small
Re Small-business tax break an incentive to stay small (April 22): Every business, regardless of income, "qualifies" for the small-business tax rate for the first $500,000 of net income. Only net income over $500,000 is subject to a higher rate. To suggest that "businesses may be staying small just to keep the lower rate" is like suggesting lower-income Canadians may be refusing higher wages just to keep from graduating to a higher tax rate.
Such inferences run contrary to experience and human nature, but apparently not contrary to the thinking of economists.
Diana Fuller Henninger, small-business owner, Sudbury
----------------------------------------------
Time to stand up to executive pay
Re Barrick, CIBC face pension fund pressure over pay (April 18): I was pleased to learn that significant shareholders in the stock of Barrick Gold will withhold or vote against the recommendations of management for the upcoming annual shareholders meeting. It is particularly gratifying to learn that the shareholders will vote against the proposals for executive compensation.
Although most companies now "allow" a vote on executive compensation, boards have generally created a scheme so complicated that only the most sophisticated shareholders can begin to understand it. In future, I plan to withhold all say on pay opportunities for executives that is not straightforward with a bonus no more than 100 per cent of base income, tied primarily to earnings and stock price.
Over the past few years, in my curmudgeonly way, I have also withheld votes for any board member over the age of 70. Although I am not a supporter of ageism, there comes a time in any person's life when one should pass the reins to the next generation. A younger, more vigorous board is more likely to be generative, rather than reactionary.
It's time for Canadian capitalists to become more proactive in the way our money is managed.
James Robblee, Ottawa
----------------------------------------------
Energy East benefits other provinces, too
Re Canadian crude shipments from U.S. Gulf surge (April 21): The largest crude oil resources on Earth, before deducting cumulative production, are Alberta (2,268 billion oil barrels), Venezuela (1,300 billion bbl) and Saudi Arabia (716 billion bbl).
The people of Alberta share ownership of 81 per cent of the mineral rights of this immense resource and want other Canadians to share in the economic benefits.
TransCanada's Energy East pipeline must be extended to the Strait of Canso (N.S.) Superport – the safest, most ecologically acceptable, ice-free, deep-water harbour on Canada's East Coast, and the closest to Europe and India through the Suez Canal.
That solves Energy East's marine terminal problems for crude exports and extends the opportunity for every province from Alberta to mainland Atlantic Canada to benefit from this vast mineral endowment.
Mike Priaro, P.Eng., Calgary
----------------------------------------------
Letters to the editor should be exclusive to The Globe and Mail. Letters may be edited for length and clarity. Submit letters here.