This may be one of the many reasons that no one wants to pay too much for DBCO.
Friday, February 6, 1998
Top Dominion Bridge officers have golden parachutes
By ROBERT GIBBENS
For The Financial Post
MONTREAL - Dominion Bridge Corp. chief executive Michel Mareng,re collected a salary of US$360,000 and bonus of US$180,000 for the year ended Sept. 30, says the company's 10K filing with the U.S. Securities & Exchange Commission. This compares with a base salary of US$360,000 in fiscal 1996. Mareng,re's service agreement was extended by the board last year to February 2000.
Dominion, incorporated in Delaware but operated from Montreal, is the target of bids from two U.S. construction groups, American Eco Corp. and Roxco Ltd. The future ownership of the company may be decided today. Dominion's chief operating officer Nicolas Matossian received a 1997 salary of US$240,000 plus a bonus of US$96,000. His service contract ran out Jan. 31, the filing said. Last year, Dominion posted a net loss of US$22.3 million (US77* a share), against a net loss of US$9.9 million (US55*) in fiscal 1996. Net sales were US$568 million against US$363 million.
The next highest-paid executives after Mareng,re and Matossian were: Arthur Gelinas, president of the Davie Industries Inc.unit, US$150,000; Olivier DesprSs, secretary and legal counsel, US$148,000; and Robert Chartier, US$125,000. The filing said that with a change in control, these five executives would have golden parachutes. If control had changed in fiscal 1997, payments would have totalled US$3.1 million, including US$1.08 million for Mareng,re. For fiscal 1998, the company will seek to retain Mareng,re "while continuing to tie a significant percentage of his compensation to financial performance." Dominion Bridge shares (DBCO/nasdaq) closed yesterday up 1/16 at US$2 3/32.
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