Power Corp. discourages more input on top pay

Company urges shareholders to reject motion giving them a say on executives’ salaries

MONTREAL— Power Corp. is urging its shareholders to once again reject a proposal that would allow them a say on the way its top executives are paid.

The shareholder rights group MEDAC is urging the Montreal-based firm to conduct an advisory vote by shareholders, as scores of companies do, including Canada’s large banks. A similar proposal last year was rejected.

According to a regulatory filing ahead of Power’s annual meeting on May15, Power is urging shareholders to reject the motion. It says setting executive compensation is an “increasingly complex” task and one of the key responsibilities of the board and its independent compensation committee.

The motion will be voted on at the first Power Corp. annual meeting since the October death of Paul Desmarais Sr., who built Power into a multibillion-dollar business empire that includes Great West Life, Investors Group and Mackenzie mutual funds and media interests.

The Desmarais family trust holds or controls 99.49 per cent of preferred shares and 11.76 per cent of subordinate voting shares of Power.

The proxy filing says Power chairman Paul Desmarais Jr. received $7.66 million of compensation last year — $5.12 million from Power and $2.5 million from its top subsidiary, Power Financial. That compared to $5.77 million in 2012 and $5.2 million in 2011.

Deputy chairman Andre Desmarais received $7.74 million — $5.38 million from Power and $2.36 million from Power Financial. That compared to $5.77 million in 2012 and $5.37 million in 2011.

Each brother received $1.1 million in salary from both companies, $187,500 in share-based awards, $3.08 million in option-based awards, $1.75 million in bonuses, and between $548,000 and $641,000 in other compensation.

Meanwhile, Power Financial CEO Jeffrey Orr’s total compensation last year was $11.2 million, up 11 per cent from 2012 and nearly 43 per cent from $7.8 million in 2011.