Securities regulators have revealed the results of a review of how well publicly traded companies comply with executive compensation disclosure requirements. The Canadian Securities Administrators found that 95% of companies studied tended to discuss executive compensation in very general terms, without explaining specifically how compensation was determined or how it related to the companies’ performance.

“The compensation committee reports need improvement by the vast majority of companies we examined,” said Doug Hyndman, chair of the CSA, in a news release. “I trust that all issuers will note our findings and raise the bar on their compensation disclosures.”

The review drew particular attention to the use of boilerplate language in company reports. It noted the use of generalities and the absence of specific required compensation information in the company reports significantly decrease the value of these disclosures.

“Recent scandals in the United States have given prominence to the gap between the level of information companies provide on executive compensation and the level that investors require,” said Hyndman. “Our coast-to-coast review of executive compensation disclosure revealed areas where Canadian companies can improve their disclosure practices. We will monitor compensation disclosures to ensure they meet the requirements.”

The CSA Staff Notice 51-304 “Report on Staff’s Review of Executive Compensation Disclosure” is available from the commission Web sites.