The remuneration of senior officers of Power Corporation jumped 16.7 % last year, while that of the great bankers of Bay Street has decreased, a situation denounced by the Movement of education and defence of shareholders (MÉDAC).
Paul Desmarais Jr, the former co-ceo of Power, was granted a compensation from 8.77 million $ for his work at Power Corporation and Power Financial in 2019. This is an increase of 21% compared to the previous year.
His brother, André Desmarais, also ex-co-head of Power, has seen his compensation go from $ 7.7 million to $ 8.4 million, an increase of 8.5 %.
All in all, the four most senior officers of Power have received in the past year, a fee of $ 29.7 million, an increase of 16.7 %.
For the MÉDAC, it is a lot of money paid to executives for the returns offered. “It is a little weird given that Power evolves in the same sector as the banks. The compensation of the officers of all the banks this year has fallen, ” stresses Wille Gagnon, director of the organization.
“We wonder what is the component of their remuneration which enables them to increase their overall compensation,” he says. Is it that the performance is really better than banks ? I doubt it. “
The director of the MÉDAC believes that the fusion of Power and Power Financial, announced in December 2019 (and who has seen the action of Power take of value in the short term), is not a good reason to increase pay. “This is not a performance that is attributable to the principal activities of the company,” he says.
The MÉDAC also laments that there is less information on the compensation of the senior executives in the financial records of Power as those of other comparable companies.
Despite everything, the organization was pleased with the fact that Power had accepted two of his proposals, or the holding of an advisory vote on the compensation (from 2021 onwards) and the breakdown of the results of the voting by class of shares.
“It’s been ten years that we achale with those issues, he said. It occurs at the time of the changing of the guard. “The two brothers Desmarais announced at the end of 2019 they would leave their duties to the head of the conglomerate.
The leaders of Power are not the only ones to be paid within the Desmarais empire. Jeffrey Orr, the new big boss of Power that the former head of the Financial Power, has received $ 12.5 million in 2019. It is more that the bosses of several major banks.
Despite the compensation increases, the share of Power has been declining over several years. The title of the company plummeted 35 % in the last year and 37 % in the past five years.
► The annual meeting of Power must be held virtually on may 15th.
POWER CORPORATION IN 2019
- Income : 48,8 billion $ (+ 1,5 %)
- Net income : $ 1.1 billion (- 14 %)
- Remuneration of senior officers : $ 29.7 million (up 16.7 %)