Canadian Pacific Railway putting brakes on executive perks after criticism

Canadian Pacific Railway (TSX:CP) is cutting back on perks for its top executives and changing the way they're paid in response to shareholder frustration over C-suite compensation.

In a regulatory filing, the Calgary-based company says it will place greater emphasis on safety and operating income to incentivize executives.

CP says operating ratio, an efficiency measure, will have less bearing on executive compensation going forward.

The measure improved for five straight years under Hunter Harrison, who recently departed as CEO, though some have raised concerns about CP's approach to safety on his watch.

The issue of executive compensation came to a head during the company's annual meeting last year, when shareholders rejected CP's efficiency-based rewards system in a non-binding vote.

The company says it will rein in perks, including personal use of its corporate jet, for new CEO Keith Creel.

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