SNC-Lavalin CEO earned $5 million in 2014 despite asking for no bonus

MONTREAL – SNC-Lavalin CEO Robert Card earned nearly $5 million in compensation last year despite not being paid a bonus because of the engineering and construction company’s weak financial performance.

“In light of these disappointing financial results, the CEO requested to forgo the bonus he would have otherwise been entitled to receive for 2014 and the board has accepted his request,” the head of the board’s human resources committee said in a letter to shareholders included in its proxy circular filed Thursday.

As a result, Card’s total compensation decreased 11.4 per cent to $4.96 million from $5.6 million the previous year.

His base salary increased four per cent to $975,775 and share-based awards doubled to $3.8 million. However, he received no options or bonus. In 2013, the value of options awarded totalled $1.98 million and he received a $576,500 bonus.

Other compensation fell to $195,155 from $216,891.

The Montreal-based company (TSX:SNC) earned $1.33 billion or $8.74 per diluted share last year, compared with $35.77 million or 24 cents per share in 2013. Adjusted profits increased to $373.7 million from $111.7 million while revenues grew four per cent to $8.2 billion.

However, SNC-Lavalin said its core engineering and construction business continued to “underperform expectations.”

Meanwhile, the company said CN Rail (TSX:CNR) chief executive Claude Mongeau won’t seek re-election as an SNC-Lavalin director after 11 years on the board.

Mongeau was appointed last month to the board of the Toronto-Dominion Bank (TSX:TD). Under CN rules, the company’s chief executive is not permitted to sit on more than one outside board.

Meanwhile, SNC-Lavalin said in the circular that its largest shareholder is the Caisse de depot et placement du Quebec. The pension fund manager owned 17.27 million shares, representing 11.33 per cent of all shares outstanding.