CEO 100 GUIDE

A WEALTH OF NAMES AND NUMBERS AWAITS. HERE’S A KEY TO OUR CATEGORIES, CRITERIA AND ASSUMPTIONS

A guide to understanding the CEO Scorecard.

RANK: Companies are ranked based on their total two-year return to investors (see “2-Year Return %”). CEO(s): All chief executives must have been in office for 18 months as of the end of Aug. 1, 2011. The years in which they took office have been included in the biographies that follow the scorecard. Where a company has not named a CEO, the highest-ranking corporate manager is included instead. COMPANY: Companies must be on the TSX as of Aug. 1, 2013, have $500 million in annual revenue and a market cap of $1 billion as of the same date, with data sourced from Bloomberg. Companies must also have been publicly traded since Aug. 2, 2012, and reported executive compensation since fiscal 2012. 2-YEAR RETURN %: The scorecard’s standard period of measurement is two years, representing the company’s return to investors from Aug. 2, 2012, through Aug. 1, 2014. This includes the change in its share/unit price (adjusted for splits and consolidations), as well as dividends and distributions. INDUSTRY INDEX: The S&P/TSX index associated with the company’s operations. 2-YEAR INDEX CHANGE %: The change in a particular industry index. REVENUE: Gross revenue is reported for fiscal 2013 and 2012, based on data published by Bloomberg. CEO COMPENSATION: Figures reflect the compensation paid to individual occupants of the top management position. In some cases, where more than one person held the office during the two-year period, figures are pro-rated to reflect the total paid to those CEOs. Where companies have co- CEOs, compensation is the total received by both individuals. SALARY: Base salary paid during fiscal 2013 and 2012. OTHER: Includes all other forms of compensation, such as annual bonuses, long-term incentive plan payments, deferred share grants, car allowances, pension contributions, insurance premiums, interestfree loans and other perks. TOTAL FIXED PAY RECEIVED: The total of salary and other compensation paid in 2013 and 2012. +/- VALUE OF OPTIONS: Represents the annual increase or decrease in the value of options, both exercised and unexercised. The change in options is derived by calculating the difference in the value of unexercised in-the-money options at fiscal year-ends, then adding the value of options exercised during the fiscal year. Because option values rise and fall with the company’s share price, options may present as a loss. PAY RECEIVED: The average compensation paid in fiscal 2013 and 2012. BANG FOR THE BUCK: This figure aims to show whether a CEO is overpaid or underpaid. A proprietary algorithm compares the CEO’s two-year average compensation to the scorecard average ($ 4,294,950). It compares the two-year average revenue of the company to the scorecard average ($ 7,105,188,290). And it compares the company’s two-year return on investment to that of the relevant S&P/TSX sector index, which serves as a peer group. The Bang for the Buck is read as a multiple: A BFB of $1 means the CEO’s pay is precisely what it should be; a BFB of $2 means the CEO was worth twice what he or she received . PAY DESERVED: This represents the annual compensation that, according to the Bang for the Buck, the company should have paid its CEO( s) over the past two years. It’s derived by multiplying “Pay Received” by “Bang for the Buck.”