Toronto-based Rogers Communications Inc. paid outgoing CEO, Guy Laurence, a total of $42.6-million over three years.
In an interaction with The Globe and Mail, Paul Gryglewicz, Senior Partner, Global Governance Advisors, explained, “What we see highlighted here is the cost of turning over your Chief Executive is substantial to the shareholder.” However, he added that at just shy of three years, Mr. Laurence’s tenure with the company is in line with the median range of about three or four years for many Canadian CEOs.
One somewhat unique feature of Mr. Laurence’s separation package, is the structure for his remaining stock options yet to vest. Mr. Gryglewicz noted that it is a shareholder-friendly move to provide for a continuation period – rather than accelerating the vesting period and allowing him to exercise the options immediately – because it means that whatever value Mr. Laurence receives for his options will be tied to the performance of the company’s shares, which is in part attributable to decisions he made when he was still at the company.
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