Posted December 17, 2010 at 00:01 | Updated December 17, 2010 00:01
The restructuring is completed, the five top leaders of the forest will share up to U.S. $ 7.7 million in bonuses
Bonuses to executives dream of AbitibiBowater
Now that AbitibiBowater (TSX: ABH) has completed its restructuring court, the five top leaders of the forest to spend the cash: they will receive up to U.S. $ 7.7 million in premiums of all kinds.
Recognition awards
By itself, the chairman and CEO, David Paterson, will leave with nearly U.S. $ 4 million if the company met its financial targets Montreal in 2010.
This is revealed in documents filed Wednesday and yesterday with the Securities and Exchange Commission (SEC) of the United States.
Mr. Paterson was first entitled to "grant recognition related to the restructuring" of U.S. $ 765 000 plus a premium of U.S. $ 382 500 if the company achieves its profitability goals for the six months 2010.
In addition, a severance payment of U.S. $ 1.34 million, which represents 100% of his base salary and the average of its last two annual bonuses.
In all, the five largest employers of AbitibiBowater will U.S. $ 2.16 million "grants of recognition" and U.S. $ 1.08 million in bonuses.
That's not counting 35 other company executives are also entitled to these "awards of recognition," but we do not know the total value.
In addition, four senior executives receive stock options and restricted stock of the restructured company worth a total of 1.74 million USD. Instead, Mr. Paterson will receive a lump sum payment of $ 430,000, or 25% of the value of options and shares to which he was entitled.
U.S. $ 150 000 per month
David Paterson will leave his position as CEO on Dec. 31, but it will remain an advisor to the Executive until 31 July. As such, it will receive U.S. $ 150,000 per month or $ 900,000 for six months of work (it will not be paid in January).
AbitibiBowater even reimburse Mr. Paterson's fees of the lawyers who negotiated his departure from the company up to U.S. $ 35 000.
For its part, the future boss of the Forest, Richard Garneau, will win $ 765,000 U.S. per year and will be entitled to an annual bonus equal to this amount if performance targets are met. He will also receive options to purchase shares, the value will be 225% of his annual base salary, or $ 1.72 million U.S..
Pierre Choquette, spokesman for Abitibi, said yesterday that the remuneration policy for senior executives was approved by creditors. He argued that it was below the average for companies of comparable size.
On the "gray market" of the Toronto Stock Exchange, the share of AbitibiBowater closed at $ 22.17 Thursday, up seven cents.
