Paul Chiasson The canadian Press
The new president and chief operating officer, Charles Emond, received a total compensation of 2.78 million in 2019.
Together, the five highest paid officers of the Caisse de dépôt have received a total compensation of $ 13.9 million in 2019, in a growing market. In its final year of the presidency of the institution, Michael Sabia has received 4.4 million, an increase of 14.5 %.
According to the data of the annual report of the Caisse de dépôt presented to the national Assembly on Tuesday, the new president and chief operating officer, Charles Emond, received a total compensation of 2.78 million in 2019 as the first vice-president, Québec, private placements and strategic investments. In addition to the fees in lieu related to its hiring of 713 000 $ in 2019, from about 1.5 million in 2020 and 1.8 million in 2021. The spokesperson of the Fund, Maxime Chagnon said to The canadian Press that the amount is compensatory to which he would have been entitled if he had remained with his former employer, Scotiabank. “The idea is not to pay the money at once. It is spread in the time to ensure that you keep the person a number of years. “
Mr. Emond will also be entitled to an allowance of $ 2.5 million in the event of a non-voluntary employment. Mr. Sabia had waived the right to any compensation, end of employment, one reads in the documents of the Fund.
The Fund posted a total return of 10.4 % by 2019, under the 11.9 % posted by its benchmark index. It has done slightly better than its benchmark in the segment of fixed income (8.9% compared to 8 %), but much less well on the side of real assets (1 % vs 7.2 %), this segment having been sealed by a counter-performance in the real estate sector, shopping centres in mind. On the stock market, the Caisse has made 15,3 %, against 16.3% for its benchmark index.
For the whole of the institution, the bonuses awarded were $ 156.8 million, an increase of 9.3 % compared to 2018. In the context of the pandemic, the institution has, however, taken the decision to freeze the salaries of executives, managers and certain high-level experts of the Fund and its subsidiaries. In addition, the payment of the variable remuneration linked to the performance of 2019 is postponed until the third quarter of 2020. The members of the management committee have decided to postpone and to co-invest the maximum possible amount of their variable remuneration for a period of three years from 1 January 2020 until 2022. “These deferred amounts will vary according to the returns of the Caisse, to be increased as well as downward “, she said.
In his presentation, Mr. Émond has evoked the environment of high volatility and instability of markets. “Over the last 18 months, investors have had to deal with extremes in the markets, upward or downward. At the end of 2018 : market plunging and record one of their worst annual returns since the financial crisis of 2008-2009. 2019 : market who know one of the strongest outbursts of the past 30 years — yet disconnected from the real growth. Early 2020 : markets collapsing, overwhelmed by the fears associated, on the one hand, the pandemic of COVID-19 — which has created a shock simultaneous and rare on supply and demand — and, on the other hand, the price war between the oil-producing countries “, he enumerated. And to add : “What is most striking is the speed and the magnitude of the recent movements. This is also how the years 2020 and 2019 will be the opposite. “
He said to approach his presidency with caution but also with confidence.
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