Transcontinental paid $6.7 million to its former CEO, who left the company after just 18 months at the helm of the printer and packager. This information appears in regulatory documents sent to shareholders of the Montreal company.
Peter Brues left the company last June after only 18 months in office. In fiscal year 2023, Mr. Brues earned total compensation of $11.9 million. Of this amount, 6.7 million constitutes severance pay.
Transcontinental did not wish to comment on the severance package. A company spokesperson clarified by email that the compensation was in accordance with the terms of Mr. Brues’ employment contract.
The company made no further comments when announcing the departure last June. “Both parties agreed that this was the right path to follow,” replied the spokesperson, Nathalie St-Jean.
Second change in two years
Transcontinental faces a series of headwinds as the rising cost of living weighs on demand in the packaging segment and the printing sector experiences a structural decline.
The company’s stock had lost nearly a quarter of its value under Mr. Brues’ watch. The stock has lost another 7% since his departure.
It was the second significant changing of the guard in less than two years. Peter Brues succeeded François Olivier, who had led the Montreal company for 13 years before retiring.
The Montreal Journal later revealed that Mr. Olivier and the founder’s daughter and executive chair of the board of directors, Isabelle Marcoux, had initiated divorce proceedings.
For his part, Mr. Olivier was entitled to a severance package of $1.5 million “in recognition of his significant achievements,” according to regulatory documents filed by the company.
The new and current CEO, Thomas Morin, received compensation of $2.7 million. The total represents Mr. Morin’s compensation as president of the packaging division, until June 6, and as president and CEO thereafter.
The executive president of the CA, Isabelle Marcoux, received $1.8 million in compensation.
Change of role for Rémi Marcoux
Furthermore, the founder of the company, Rémi Marcoux, will not stand for re-election as a director of the company. The board, however, appointed Mr. Marcoux as “founder emeritus”, a position which is not subject to a shareholder vote.
Mr. Marcoux founded Transcontinental in 1976. In a press release, the entrepreneur reiterated his confidence in his daughter Isabelle, who has been president of the board since 2012. “I fully intend to slow down the pace a little at 83 years old. “, he explains.
Through shares with multiple voting rights, the Marcoux family controls nearly 73.8% of shareholder voting rights.