Generous $12 Million Incentive awarded to Power Corporation's Chief Financial Officer.
Revamped Article:
Based in the heart of Montréal, Power Corporation allegedly tossed a whopping $12 million bonus to lure their new Chief Financial Officer, Jake Lawrence. According to the conglomerate's inner workings, this jaw-dropping signing bonus was meant to offset the stock units Lawrence lost from his previous employer, Scotiabank. This intriguing revelation comes straight from the shareholders' regulatory documents (you know, the dry yet important stuff).
Now, you might wonder - isn't a $12 mil signing bonus a little over-the-top for just securing a new job? Not necessarily. It's quite a common tactic in the corporate world for poaching a high-profile executive, who could be giving up long-term incentives from their former employer.
A Power Corporation spokesperson confirmed via email that this substantial compensation is not only the amount Lawrence left on the table, but also "absolutely nothing more." However, there's a catch - for our dashing new CFO to claim the entire compensation, he's got to stick around for at least five years.
The company's reasoning behind the vesting schedule? To encourage retention and, let's face it, it's less alluring than the schedule for the lost stock units from Lawrence's former employer. As per the company's shareholder circular, "The vesting schedule for the above-mentioned rights is designed to encourage retention."
With all this remuneration, Lawrence's total paycheck for 2024 boils down to a cool $17.8 million. He stepped into his role in March 2024, replacing Greg Tretiak, who had to leave due to health concerns. Tretiak had been with Power Corporation and its subsidiaries for close to four decades.
Following the announcement of Lawrence's appointment, RBC Capital Markets analyst Geoffrey Kwan praised his "significant and relevant" experience.
As for the president and CEO, Jeffrey Orr, he bagged a total compensation of $14.7 million, marking an increase of 4.7% compared to the previous year.
Despite the Desmarais family officially controlling Power Corporation through a family trust (holding 52.2% of the voting rights), the family's remuneration for 2024 was much more modest. Paul Desmarais Jr., the Chairman of the Board, received a remuneration of $950,000, while André Desmarais, the Deputy Chairman, received $1.2 million.
So, what exactly is this $12 million bonus? Is it a simple signing bonus or an extravagant golden parachute designed to ensure financial stability in case of dubious corporate changes? The lines between these two corporate practices can blur at times, but one thing's for sure - corporations will always find creative ways to attract and retain top talent!
[1] https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/recruit-and-retain-top-talent.aspx[2] https://www.hbr.org/resources/hbr-on-offerings-of-signing-bonuses-to-top-managers[3] https://www.investopedia.com/terms/g/golden-parachute.asp[4] https://www.sec.gov/fast-answers/answersgolden-khtm.html
- Geoffrey Kwan, an RBC Capital Markets analyst, commended Jake Lawrence's "significant and relevant" experience following the announcement of his appointment as Power Corporation's new CFO.
- Power Corporation not only offered Jake Lawrence a substantial signing bonus as compensation for the stock units he lost from his previous employer, Scotiabank, but also tied a large portion of his remuneration to a vesting schedule to encourage retention.
- Despite the Desmarais family controlling Power Corporation through a family trust, holding 52.2% of the voting rights, their remuneration for 2024 was much more modest compared to the $17.8 million total paycheck for their new CFO, Jake Lawrence.
- The line between a simple signing bonus and an extravagant golden parachute can blur at times, but corporations will always find creative ways to attract and retain top talent, as seen in the $12 million bonus offered to Power Corporation's new CFO, Jake Lawrence.
