Abitibi CEO given nearly $4-
million golden handshake
Friday, 17 December 2010 - 2:31pm
THE CANADIAN PRESS
MONTREAL—AbitibiBowater’s departing chief executive will receive a golden
handshake likely worth almost $4 million (U.S.) by the time he leaves the forest
products company next summer, according to a U.S. regulatory filing.
David Paterson has been given a severance package worth more than $1.3 million
(U.S.), an additional $765,000 for his restructuring work, a $382,500 bonus if the
company meets its profit target for the first six months of 2010, $430,000 in lieu of
stock awards, and up to $35,000 in legal fees to negotiate the deal.
The 56-year-old Georgia native also will be paid $150,000 (U.S.) a month, or an
additional $900,000, as a consultant for the six months after he formally leaves his
position on Jan. 31.
In addition to Paterson, four other AbitibiBowater senior executives are splitting nearly
$4 million (U.S.) in cash and stock for their efforts in helping the forest products
company restructure its operations and exit 20 months of creditor protection.
Chief financial officer William Harvey and human resources vice-president Alain
Grandmont each receive $993,438 (U.S.), including $451.563 in stock awards.
Pierre Rougeau, executive vice-president of paper operations and sales, earns $1.05
million (U.S.), including $478,125 worth of stock awards.
Chief legal officer Jacques Vachon received $794,750 (U.S.), including $361,250 in
stock.
Altogether, the five senior executives will receive $2.16 million (U.S.) in restructuring
awards and $1.08 million (U.S.) in profit bonuses, as well as the stock awards.
The figures did not include undisclosed restructuring awards to be provided to 35 other
executives.
AbitibiBowater also awarded each non-employee director stock options valued at
$100,000 (U.S.)
Chairman Richard Evans also was granted a $150,000 (U.S.) cash award.
Meanwhile, Paterson’s replacement, Richard Garneau, 63, will receive a base salary of
$765,000 (U.S.), a profit bonus estimated at$765,000, stock options worth $1.72
million, a club membership, five weeks’ vacation, and a $16,000 allowance.
Kevin J Carey makes $150,000/year and Paterson makes that in a month? Who is important to the society?
I don't have faith in the Justice System!
