The Globe and Mail reports in its Tuesday edition that Canopy Growth chief executive officer David Klein has been richly rewarded despite the company's lacklustre results.
The Globe's Vanmala Subramaniam and David Milstead write that Mr. Klein received a cash bonus of $1.72-million in addition to his base salary of $975,000 for the fiscal year ending March 31, despite massive losses in that time period (all figures U.S.).
Canopy's proxy statement for fiscal 2021 showed that 50 per cent of Mr. Klein's bonus was based on a free cash flow goal -- not losing more than $850-million. In part because Canopy recorded smaller cash losses it was deemed Mr. Klein was deserving of 140 per cent of his target, even though it missed goals for revenue and other measures of profit. Canopy saw its quarterly revenue grow between March and December, 2020, but has since suffered two consecutive quarters of revenue decline.
Mr. Klein's total pay was $2.79-million, down significantly from the prior year, which included an initial grant of Canopy stock options the company valued at $24.8-million. At last month's annual meeting, 97.5 per cent of shareholders voted to approve the company's approach to executive compensation.
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