Hunter Harrison, the veteran chief executive of Canadian Pacific Railway Ltd., made $19.9 million in 2015 – a six per cent increase even while the company’s stock price fell 22 per cent.
CP said the increase in Harrison’s total compensation was due to the fact that he’s paid in U.S. dollars. When the exchange rate had held steady from 2014, his compensation might have fallen eight percent, according to the company’s proxy statement.
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Harrison’s base salary was steady at US$2.2 million, which translated to $2.8 million in Canadian dollars when compared with $2.4 million in 2014. Also, he received $4.7 million available awards, $5.2 million in options awards, $6 million in non-equity incentive plan compensation and $1.2 million in other compensation, including the utilisation of the company’s private jet for personal and business trips.
CP acknowledged that Harrison’s compensation is “much higher than his peers.” By comparison, CP’s acquisition target, Norfolk Southern Corp., paid then-CEO Jim Moorman US$13.5 million in 2015.
However, CP also pointed out that Harrison’s total compensation between June 2012, as he took the job, and December 2015 is only 0.67 per cent from the total additional value made for shareholders over the same period.
