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Gerald McGoey, former CEO of Look Communications.
Gerald McGoey, former CEO of Look Communications.
(KEVIN VAN PAASSEN/THE GLOBE AND MAIL)

Court ruling on director’s compensation a warning for boards

Amid a climate of continuing concern over executive pay, boards of directors looking to hand themselves big bonus packages or stock options will think twice after a recent ruling from the Ontario Court of Appeal, corporate governance experts say.

The ruling involves a company called Unique Broadband Systems Inc. (UBS), which went into bankruptcy protection in July, 2011, and owned a controlling interest in an upstart cable and Internet company called Look Communications Inc.