BUSINESS

GLV executives received pay boosts despite company's weak financial results

08/28/2012 05:14 EDT | Updated 10/28/2012 05:12 EDT
MONTREAL - Senior executives at GLV Inc. received higher compensation last year even though the water treatment technology company lost $54.1 million, the firm disclosed in documents ahead of its annual shareholders' meeting next month.

Chief executive Richard Verreault's total compensation jumped nearly 38 per cent to $1.06 million, from $771,090 in 2011. But it was 16 per cent lower than he earned two years ago.

GLV (TSX:GLV.B) has struggled to recover from losses incurred by its desalination segment in Europe that has led to two rounds of layoffs.

The Quebec-based company recorded a $40.9-million charge against goodwill and intangible assets, including $23.7 million attributable to its desalination segment and $15.6 million to the industrial operations in the fourth quarter.

It also took a $4.9-million restructuring charge related to its desalination segment. That's in addition to a $1.2-million expense recorded in the past two quarters.

Overall, it lost $54.1 million in 2011, compared to a loss of $23.2 million in the prior period.

The adjusted loss was $7.1 million or 16 cents per share. That compared to a loss of $12.5 million or 28 cents per share in fiscal 2011.

Verreault's base salary increased 6.3 per cent to $475,000. He also received $448,000 in option-based awards, $54,958 in cash incentives and $83,682 in other compensation, including a car allowance.

A year ago, the 49-year-old didn't receive options but did obtain $252,461 in other compensation.

Water treatment group president Marc Barbeau and pulp and paper group president William Mahoney also received remuneration increases from 2011.

Barbeau's compensation increased to $898,606 from $673,079. Mahoney's was $466,262, up from $400,803.

The total compensation for GLV executive chairman Laurent Verreault, 70, dropped nearly in half to $882,056, from $1.7 million in 2011. The change was due $1.4 million of allowances paid last year when he ceased to be CEO, according to his employment contract.

His base salary, however, nearly doubled to $299,160.

He received $162,055 in 2010.

The father and son's stakes in the company have plummeted as GLV's share price has fallen in reaction to its financial results. Laurent's shares were worth $8 million as of March, down from $17.9 million a year earlier, according to the proxy circular. Richard's shares were valued at $2.75 million compared to $6 million a year earlier.

GLV's share price has plummeted more than 80 per cent in the past year and closed up one cent at $1.85 in Tuesday trading on the Toronto Stock Exchange.