The acquisition of Freedom Mobile could be profitable for the five main executives of Quebecor who will see their remuneration more than double thanks to an improvement in their stock options program.
The five highest executives shared $13.8 million in 2023, according to regulatory documents sent to the Montreal company’s shareholders. This represents an increase of 115% compared to last year.
The increase is mainly explained by an increase in long-term incentive compensation granted in the form of purchase options, which increases from $1.9 million in 2022 to $8.8 million in 2023.
“The board approved a special grant in connection with the acquisition of Freedom and in connection with its integration to certain key individuals,” the company explains in the document.
However, this is an estimate. Executives do not immediately receive this $8.8 million portion of their compensation. The value could potentially be different, from zero to greater, depending on the value of the options and the achievement of certain objectives.
With the exception of the President and CEO, Pierre Karl Péladeau, the other four executives each received “other compensation” of $50,000 to take into account “additional work” related to the acquisition of Freedom.
In April last year, Quebecor completed the acquisition of Freedom Mobile for $2.85 billion. The transaction offers Videotron’s parent company a springboard to expand outside of Quebec in the telecommunications sector.
“The number of Canadians reached by our mobile network increased, in 2023, from 7.5 million (or 20% of the Canadian population) to more than 26 million (or 70% of the Canadian population), thus considerably increasing our market target,” comments Quebecor in the document.
The Péladeau family
The Péladeau family maintains control over the future of the company founded by Pierre Péladeau. Pierre Karl Péladeau, his son, controls nearly 76% of the shareholders’ voting rights thanks to multiple voting shares.
The value of Quebecor shares held by Mr. Péladeau represented $2.4 billion, as of December 31.
In 2023, Mr. Péladeau received total compensation of $4.9 million, an increase of 57% compared to last year. Once again, this increase is mainly attributable to call options. The remuneration includes the $423,000 he obtained for acting as head of the TVA Group.
Two other brothers of Mr. Péladeau are senior executives of the company.
The vice-president of operational convergence at Quebecor Media, Jean B. Péladeau, obtained total compensation of $1.9 million.
Director of the company, Érik Péladeau received compensation of $920,700. The vast majority, $761,000, was paid in the form of a retirement annuity for his 32 years of service with the company.
Brian Mulroney was still active
Former Prime Minister Brian Mulroney remained active within the company in 2023 as chairman of the board, despite health problems.
Mr. Mulroney, who died last February, attended four of the six board meetings. He received compensation of $770,000 in 2023 for his services.
Mr. Mulroney had been a director of the company for 20 years and had chaired the board of directors of Quebecor since 2014. Pierre Karl Péladeau mentioned several times that he considered Mr. Mulroney as a mentor.
In an interview with Radio-Canada in March, Mr. Péladeau said that Mr. Mulroney was still interested in Quebecor’s activities, despite his health problems. He said he spoke to him on the phone several times a week in the first weeks of 2024. “The last conversation I had with him, he was concerned about the shareholders’ meeting that was going to take place (May 9). ). He thought he could attend. He always did it with pleasure, with tact, but with humor too. »