St. Joe’s CEO won’t seek re-election to Home Capital board
Kevin Smith is not seeking re-election to the board of struggling alternative mortgage lender Home Capital Group.
The CEO of St. Joseph’s Health System remained a director of the board — a position that paid him $357,500 in deferred share units last year — after resigning from his position as chair on May 8.
But Brenda Eprile, who has taken over as chair from Smith, announced in the company’s updated management information circular that he and two others are leaving the board.
Home Capital’s annual shareholders’ meeting is on June 29.
“On behalf of the board, I would … like to thank the directors who are not standing for re-election … for their many positive contributions over the years,” Eprile wrote, pointing to Smith, William Walker and Robert Mitchell.
Nine directors will stand for election, five of whom are new to the board, the company said Wednesday.
Company spokesperson Boyd Erman wrote in an email to The Spectator that neither Smith nor the firm would comment on his decision not to seek re-election.
Home Capital Group’s stock has been under pressure since the Ontario Securities Commission alleged the company and three of its executives misled investors in their handling of a scandal involving falsified loan applications.
The company has vowed to defend itself against the allegations. Smith is not one of the executives implicated in the OSC probe.
“As you know, we have been experiencing an extremely challenging period for Home Capital,” Eprile wrote. “The Corporation and its Board are doing everything possible to recover from the crisis in confidence Home Capital has faced.
“It is our firm commitment that Home Capital will do all it can to emerge from this period strong and continue to play a vital role in the Canadian mortgage market.”