The Globe and Mail reports in its Friday, Dec. 30, edition that Canaccord Genuity Group's bonus kerfuffle had tongues wagging in 2016. The Globe's Niall McGee writes that the first rule of investment
banking is do not mess with
bonuses. Canaccord's management did
just that. In May, The Globe reported that certain Canaccord
bankers were told that
they would not receive their
year-end bonuses unless they
committed to staying with the
firm for a year. One disgruntled
banker likened the policy to
"being held hostage." After a
brief impasse, a truce was
worked out whereby bankers
were paid a smaller bonus, with
the balance to be paid in stock
due to vest over a number of
years. The stipulation to commit
to staying a year was dropped.
A number of Canaccord's top
bankers left the firm soon after
the kerfuffle. Canaccord shares had an up and down year. The shares started 2016 at about $5.10 and then tumbled to a 52-week low of $3.50 in March, and then rallied to its 52-week high of $5.13 in June, only to fall back to a tad above $3.50 in November, before making a final rally to its current price of $4.69.
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