Devine slams Nutrien exec exodus
Company’s solid representation needed in province: former premier
A former Saskatchewan premier is lending his voice to the chorus of people worried about an exodus of senior Nutrien Ltd. leaders from the province, describing the situation as “just unacceptable.”
Grant Devine, 74, whose government privatized Potash Corp. of Saskatchewan Inc. and who later served on Agrium Inc.’s board of directors, said the new company is not meeting its “historic moral obligation.”
“There is a real obligation on behalf of the new company to live up to the promises and the pledge … made by the Potash Corporation to have solid representation in the new company in Saskatchewan,” said Devine, who was premier from 1982 to 1991.
Nutrien was formed just over a year ago, when Potashcorp — the value of which was sliding amid an oversupplied fertilizer market — combined with Calgary-based Agrium in what was framed as a “merger of equals.”
Twelve months later, almost all of the new company’s senior management roles are filled by former Agrium personnel; its board chair is a former Agrium director, and all but one of the executives who report to CEO Chuck Magro live outside the province.
The last 12 months have led some insiders to suggest that the Calgary-based company effectively “won” the transaction.
Nutrien is also set to lose one of its two directors who live in Saskatchewan this year, which Devine said is especially concerning given how important it is that the corporation’s strategic arm understand the province.
Referring to Potashcorp’s reputation as a major donor to community organizations and initiatives, the former Progressive Conservative politician said, “Those kinds of things are not as likely to happen if your main players in the organization don’t live here.”
“The more in touch you are with the community, the more likely you are to participate,” he added.
Potashcorp based its donations on one per cent of earnings on a five-year rolling average; according to its corporate filings, that resulted in $197 million flowing to a host of organizations, projects and events between 2007 and 2017.
Nutrien, which has stepped up its advertising in the province, says it has donated to “more than 200” community organizations in Saskatchewan. As of November, its annual local investment stood at $4.5 million, according to a spokesman.
In an emailed statement, spokesman Will Tigley described the company’s community investment program as the province’s largest, and highlighted its new 10-year funding commitment to STARS Air Ambulance.
“We look forward to building on the relationship with our many community partners in Saskatchewan,” Tigley wrote.
The company has also pledged to increase the number of corporate jobs in Saskatchewan, and committed millions of dollars to office space in a new tower under construction at River Landing in Saskatoon.
The provincial government has long shared Devine’s fears. Former premier Brad Wall articulated them in the lead-up to the merger, and Premier Scott Moe has made similar statements about the company’s head office.
Last month, Moe met with Magro and Derek Pannell, the chair of the company’s board. He subsequently told the Saskatoon Starphoenix that Nutrien — which characterized the talks as productive — has not made any firm commitments.
The government’s position hinges on Potashcorp’s pledge, made amid BHP Billiton’s attempted hostile takeover, which included a promise to maintain “a strong and vital corporate headquarters in Saskatchewan,” in part by relocating five executives.
In early 2011, Potashcorp said 11 of its 14 senior executives lived and worked in Saskatoon.
The province has also said it believes Nutrien is violating a piece of legislation passed 30 years ago that requires Potashcorp and its successors to maintain its head office and senior executives in the province.
Both the pledge and the legislation are thought to be difficult for the government to enforce. Asked about the bill, which was passed to allow the sale of Potashcorp, Devine said that in hindsight he would have given it more teeth.
While Potashcorp occupied a unique place in the province as a former Crown corporation and symbol of a major natural resource, attempts to interfere with a publicly-traded company could be risky, the former premier cautioned.
“There probably is a limit to the kinds of things you can ask them to do, because they are publicly traded and the shareholders are extremely important in that whole organization, and you have to respect them.”