First Three Months’ Work Reaps $C6.4 Million for SNC Chief Card
SNC-Lavalin Group Inc. (SNC), the Canadian engineering company recovering from a corruption scandal, gave Chief Executive Officer Robert Card compensation of C$6.4 million ($6.3 million) for his first three months on the job.
Card, 60, was granted C$5.9 million in stock after he began Oct. 1, the Montreal-based company said today in a filing. He also received C$225,000 in salary, C$41,500 in pension payments and C$56,258 in other benefits, the company said.
Card, the first American-born head in SNC’s 102-year history, was hired amid an investigation that led to fraud charges against former CEO Pierre Duhaime and lawsuits from investors. Ensuring the company kept its “social license to operate” was among the top priorities for Card, who has appointed senior managers and is considering the sale of infrastructure assets from a toll road to power lines after grouping them in a new unit.
Vice Chairman Ian Bourne will take over as chairman May 2 when Gwyn Morgan retires, SNC said today in a separate statement. Three other directors will retire and be replaced by Jacques Bougie, the former CEO of aluminum maker Alcan Inc.; Lise Lachapelle, the former CEO of the Forest Products Association of Canada; and Alain Rheaume, the former president of Canadian wireless operator Microcell Telecommunications Inc.
Duhaime was paid a base salary of C$256,045 until his departure in March 2012. SNC’s board suspended severance payments of about C$5 million to the former CEO in December “until the facts surrounding Mr. Duhaime’s situation are clarified or resolved,” the company said today in the filing.
SNC fell 0.1 percent C$41.95 at 10:28 a.m. in Toronto. Through yesterday, SNC had gained 11 percent since Sept. 28, the last trading day before Card took over.
To contact the reporter on this story: Frederic Tomesco in Montreal at firstname.lastname@example.org
To contact the editor responsible for this story: Ed Dufner at email@example.com;