Laurentian Bank, EX-CEO square off on severance
Lender’s shares fall 9% since October exit
Laurentian Bank of Canada is still in talks with Rania Llewellyn over her severance pay, months after she was abruptly terminated as chief executive.
Llewellyn was let go in October, weeks after the bank wrapped up a strategic review that failed to find a buyer, and in the midst of a widespread system failure that affected customer deposits, bill payments and other services. The status of her exit pay was revealed in Laurentian’s annual proxy circular, filed with regulators on Tuesday.
“As of the date of the circular, the amount of the termination payment remains unresolved,” the Montreal-based lender said in a brief footnote. It also disclosed that while Llewellyn was “removed” as president and CEO on Oct. 1, she was “terminated on Oct. 30.” Montreal’s La Presse was the first to report on the document.
“We are working towards a resolution with our former CEO. As these conversations are still ongoing, we cannot provide further information,” a Laurentian Bank spokesperson said in an email to Bloomberg on Wednesday.
Laurentian is Canada’s eighth-largest publicly traded bank by assets and its potential sale generated buzz in financial circles but ultimately turned up no attractive bids. Its shares plunged as a result and have fallen a further nine per cent since the bank announced the departure of Llewellyn, the first woman to lead a major domestic bank in Canada.
Llewellyn received $3.6 million in total compensation in 2022 and that year’s proxy circular indicated that she would be owed $4.5 million in the event of termination without cause. Laurentian paid her $2.7 million in 2023, which included a base salary of $780,077.
Her successor, Eric Provost, received $2.6 million in total compensation last year.
The bank reported fiscal first-quarter earnings last week that missed analyst estimates, with adjusted earnings per share of 91 cents versus the average forecast of 94 cents per share.
“Expenses remain elevated, and we believe this will continue as LB navigates through a new strategic plan to adjust its business,” RBC analyst Darko Mihelic said in a note last week.