Local

Winnipeg Free Press - PRINT EDITION

No gloom in million-dollar CEO club

City biz leaders show no impact from worldwide economic pinch

By: Geoff Kirbyson

Posted: 01/2/2010 1:00 AM | Comments: 0 (including replies) | Last Modified: 01/2/2010 11:00 AM | Updates

(WINNIPEG FREE PRESS)

Not even a worldwide economic downturn could put a crimp in the salaries and other earnings the leaders of local publicly traded companies took home in the past year.

A half-dozen CEOs of Winnipeg-based firms cracked the seven-figure mark in total compensation once again, led by Allen Loney, head of insurance giant Great-West Lifeco. He pulled in nearly $730,000 in salary and a bonus of more than $1 million, 18 months after taking over the company from longtime top earner, Ray McFeetors.

But if you think the heads of the more than 40 public companies that call Manitoba home made a lot of money in previous annual lists, you ain't seen nothing yet. That's because the Ontario Securities Commission, which oversees the disclosure of such matters, recently mandated that all public companies in Canada release not only how much they pay their CEOs in salary and bonuses, but also their long-term compensation, including pension and health benefits.

So, Loney also received more than $4.8 million in "pension value." Combined with three other columns of compensation, including share-based and option-based awards, he earned a total of $7,292,989.

In second place is Edward Kennedy, CEO of the North West Company Fund, whose $626,538 salary represented less than one-quarter of his total compensation of nearly $2.9 million, then Pierre Blouin, CEO of MTS Allstream, who earned $803,066 in salary and nearly $2.8 million overall.

The other members of the million-dollar-plus club are John Marinucci of New Flyer Industries (who has since retired) at $843,077 in salary and $2.5 million in total compensation, Murray Taylor, head of IGM Financial who earned $743,333 in salary and $1.77 million in total compensation, and Arni Thorsteinson, head of the Temple, Huntingdon and Lanesborough REITs, who earned $500,000 from each for a total of $1.5 million.

The salary information was pulled from management information circulars, which are released shortly before companies hold their annual shareholder meetings. In compiling this list, the Free Press used the most recent circulars. The timing varies from company to company because annual meetings are held at different times throughout the year, therefore some figures are for 2008 while others are for 2009. It's an inexact science, to be sure.

Leonard Asper, CEO of Canwest Global Communications Corp., consistently among the top earners in the province, is conspicuously absent from this year's list. Because of the company's bankruptcy protection, it has been able to postpone its annual general meeting, which is usually held in January, to presumably sometime later this year. As such, it has not issued its circular information. In 2008, Asper got just over $1 million in total.

Only companies on the Winnipeg Free Press/Wellington West Capital Manitoba Index are included on the list. But the executive decision was made to exclude Jovian Capital, which merged with Rice Capital Management Plus in 2003, because while it used to have significant operations in Winnipeg, the vast majority of its company is run out of Toronto. As well, HudBay Minerals, which moved its head office to Toronto during the year, is omitted.

If you're wondering why some other prominent Winnipeg leaders, such as Hartley Richardson, CEO of James Richardson & Sons Limited, aren't included, it's because they run private companies. Richardson, however, who heads up one of the pillars of the Manitoba economy, would undoubtedly cut the muster. In Canadian Business magazine's Rich 100 list, which came out in November, his family ranked 15th in the country with $2.72 billion in net worth.

geoff.kirbyson@freepress.mb.ca

Republished from the Winnipeg Free Press print edition January 2, 2010 A4

History

Updated on Saturday, January 2, 2010 at 11:00 AM CST:

Clarification

In many cases, the heads of publicly-traded companies receive bonuses in a given year based on the results of the previous year.

For example, according to the most recent management information circular for FP Newspapers Income Fund, released last March, Winnipeg Free Press publisher Bob Cox received a bonus of $15,000 in 2008 for the paper's results in 2007. Since the economic downturn, a number of publicly-traded companies, including FP Newspapers, have halted bonuses.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010; View the changes. New to commenting? Check out our Frequently Asked Questions.

WFP Hockey

Download our new hockey app for the iPhone for Winnipeg Jets updates
Editor's Bulletin

Sign up for daily bulletins from editor Margo Goodhand
Winnipeg Jets

All things NHL on our Jets landing page
Twitter

Follow our reporters and our news feeds on Twitter
News Cafe

Check out the menu, read our blog posts or get info on coming events
Facebook Fanpage

Follow our Facebook Fanpage for story links, contests and special events