founder and chief executive officer Gerry Schwartz received no bonus or incentive pay in 2022 after a “disappointing year” for the company, as shareholders prepare to vote on a proposal that would put a time limit on his control of the company.
As a result, Mr. Schwartz’s direct compensation was US$1.3-million in 2022, compared with US$6.3-million in 2021 and nearly US$9.6-million in 2020. In addition to his salary, he realized US$5.7-million in gains from his participation in investments that generated carried interest and other gains, but required Mr. Schwartz to put some of his own money at risk. That brought his total earnings for the year to US$7-million.
Mr. Schwartz’s pay package is a sharp comedown for a CEO who has routinely been among the highest-paid executives in Canada in past years. In 2013,as leader of Onex, which was a pioneer in private equity and has since branched out more into asset management and private credit. Share-based awards, cash bonuses and realizations from carried interest have typically accounted for the lion’s share of Mr. Schwartz’s earnings: In 2021, he reaped proceeds of US$31.
Mr. Schwartz’s comparatively spartan pay package was disclosed ahead of a key shareholder vote to be held next month. Earlier this year, Mr. Schwartz, 81,after nearly four decades at the helm, making way for Mr. Le Blanc to be his successor. He has proposed to stay on as chairman of the board, for which he would be paid an annual “chair fee” of US$1-million, according to the filing.
Do ya think he will really miss his bonus pay...