HBC approves $ 29.5 million payment by CEO Helena Foulkes, making it one of the highest paid in Canada



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<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hudson's Bay Co.The shareholders approved a plan to pay Helena Foulkes executive director $ 29.4 million, a move that would put her among Canada's highest-paid executives. "Hudson's Bay shareholders approved a plan to pay Chief Executive Helena Foulkes $ 29.4 million, a move that would put her among Canada's highest-paid executives.

Shareholders voted for HBC's approach to executive compensation for fiscal year 2018 during Wednesday's annual meeting, which ended for the media. As long as non-binding vote on the payment package plan passed, 26.5% of shareholders voted against. According to HBC documents, the board "will take into account the results of this vote when considering future remuneration policies and issues."

Foulkes, who joined HBC last February, was tasked with reversing the performance of retailers. Throughout her tenure, she repeated that "everything is on the table" when it comes to improving HBC operations, and so far she has made several daring moves. Some of them include the sale of the Gilt Deals website, closing the Home Outfitters business in Canada and shrinking the brand of the Lord & Taylor department store network.

In an information circular released to shareholders last month, HBC said the company needed to provide Foulkes – who was previously chairman of CVS Pharmacy in the US – a new stock option, which would encourage it to create value over company. long term.

"To attract Ms. Foulkes, the (Human Resources and Remuneration Committee) determined that it was necessary and in the best interest of the company to provide a new grant of stock options to create alignment with the interests of shareholders, and encourage the CEO to generate long-term value, "the company said in its circular of information.

Foulkes' compensation plan includes a base salary of $ 1.6 million, an annual incentive plan that earned $ 5.7 million and stock-based awards totaling $ 19.6 million.

"The one-time bonuses and (long-term incentive) incentives granted to Ms. Foulkes to compensate for the damages incurred due to her resignation from her former employer will not be provided in the next few years," the company said.

HBC excluded the media from its annual general meeting on Wednesday and did not broadcast the proceedings via webcast, movements that signaled an exit from previous years, according to archived webcasts on its Web site.

<p class = "canvas-atam canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Foulkes' compensation would make it the second highest paid CEO in Canada based on 2017 data compiled into a & nbsp;report of the Canadian Center for Policy Alternatives. In 2017, when the most recent data are available, the highest-paid chief executive was Richard Baker of HBC, whose pay came to $ 54.8 million, followed by Don Walker of Magna International and Keith Creel of Canadian Pacific Railway, for $ 20.1. The top paid woman on the list was Linda Hasenfratz of Linamar, who received $ 16.5 million. "Foulkes' compensation would make it Canada's second highest paid CEO based on data compiled in 2017 a report from the Canadian Center for Policy Alternatives. In 2017, when the most recent data were made available, the chief executive officer was Richard Baker of HBC whose pay was $ 54.8 million, followed by Don Walker of Magna International Inc. Keith Creel of the Canadian Pacific Railway ($ 20.1 million). The highest-paid woman on the list was Linda Hasenfratz of Linamar who received $ 16.5 million.

The decision on the compensation of executives occurs to the extent that the HBC considers controversial a private offer of a majority group of shareholders.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This week, shareholder Land & Buildings Investment Management LLC & nbsp;hit the proposed offer& nbsp; of the group of major shareholders, calling the offer "totally inadequate." "This week, activist shareholder Land & Buildings Investment Management LLC has criticized the proposed offer by the major shareholder group, calling the offer" woefully inadequate. "

In a letter to the HBC special committee reviewing the bid, Land & Buildings founder Jonathan Litt urged the company to explore other transactions that could "maximize value for all shareholders."

The letter points to a statement made by Foulkes last year, which set the company's property value at $ 28 per share – well above the private offer of $ 9.45 per share.

The group of shareholders, which includes former HBC CEO and now chief executive Baker, controls 57% of the company's stock.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With files from Canadian Press"data-reactid =" 29 ">With files from Canadian Press

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Download the Yahoo Finance application, available for download Apple and Android."data-reactid =" 43 ">Download the Yahoo Finance application, available for download Apple and Android.

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