MONTREAL – Cogeco Inc. and Cogeco Cable Inc. are expecting their senior executive officers to own more of the two companies. “To reflect best corporate governance practices in Canada,” Cogeco announced Monday it was upping the minimum share ownership levels for people such as Cogeco Inc. and Cogeco Cable President and CEO Louis Audet.
Audet is expected to acquire shares equaling at least five times – previously it was three – his base salary. He will have until October 2011 to reach that level. The minimum share ownership level to be held by Audet may be comprised of multiple and subordinate voting shares of Cogeco and/or Cogeco Cable; he’s encouraged to own shares in both corporate entities.
Vice presidents reporting to Audet are expected to hold shares equal to at least 80% of their annual base salary within five years and are being encouraged to go as high as 100%.
These requirements are being adopted “to encourage senior executives of Cogeco and Cogeco Cable as applicable, to increase their ownership stake in the corporations they manage so as to further align the interests of senior management with those of shareholders at large,” Cogeco said in an April 23 statement.
