D&O insurance premiums on the rise

Insurance premiums for directors and officers are on the rise as annual D&O insurance premiums for the Canadian Spencer Stuart Board Index (CSSBI) leading 100 Canadian companies has increased by 26% over last year, reaching an average of $1,613,361 a year, according to this year’s CSSBI.
The 10th annual CSSBI, published by global senior-level executive recruiting firm Spencer Stuart, features an analysis of the board composition and processes of 100 publicly traded Canadian companies with revenues exceeding $1 billion (the “CSSBI 100”). The index also compares Canadian data to that of comparable U.S. companies, which was gathered for the Spencer Stuart Board Index in the United States.
Other findings noted in the report indicate that most Canadian boards are trying to meet new Canadian Securities Administrators (CSA) governance regulations. While almost all CSSBI 100 boards are in full compliance with the former TSX regulations, only 42% of these boards comply fully with the new CSA governance guidelines which came into effect June 30, 2005.
The report also noted that a number of Canadian companies are attempting to comply with SEC rules and regulations whether required to or not 48% of surveyed companies are required to comply with SEC rules, but 83% are targeting for some level of compliance.
The complete Canadian Spencer Stuart Board Index is available on the firm’s web site: http://www.spencerstuart.com/research/boards/946/.