RiskMetrics Group has highlighted slate director ballots in Canada as one of its key issues for 2010.

The financial risk management firm opened its annual comment period for its 2010 proxy voting policies on Monday.

The comment period, which runs until Nov. 11, offers institutional investors, issuers, and industry players the opportunity to provide feedback on RiskMetrics’ draft policies.

“Engaging with market participants on our draft policies is crucial to how RiskMetrics develops transparent policy guidelines,” said Steve Harvey, head of RiskMetrics Group’s governance business. “Offering this level of transparency around our voting policies is unique to RiskMetrics and critical to representing balanced global policies for investors.”

The firm plans to release its final 2010 policy updates on Nov. 20 and its global policy summary and concise guidelines in late December.

The issue it highlights for Canada is the use of slate ballots to elect directors. It notes that some of Canada’s largest issuers continue to elect directors by slate ballot, “depriving shareholders of the opportunity to express approval or disapproval for individual directors”.

“Although the number of slate ballots has declined in the last two years a minority of issuers has ignored calls from regulators and corporate governance advocates to hold meaningful director elections,” it adds.

The firm is therefore proposing to recommend a withhold vote from all directors at all issuers listed on the TSX which elect directors by slate, where a second triggering governance, compensation, or performance concern has been raised. “The proposed new policy in Canada is expected to promote best practice in director elections in the Canadian market which aligns with best practice in other markets,” it says.

IE