Torstar CEO grilled over severance deal

[CHIMO]

TORONTO — On his last day on the job, Torstar Corp. chief executive officer Rob Prichard faced a barrage of questions about his $9.6-million severance package – which comes amid layoffs and a stock price that has lost more than 80 per cent from its peak.

Mr. Prichard, who announced his departure three months ago, sat mostly silent during the company's annual meeting Wednesday while representatives from the union representing Torstar employees questioned how he could take such a lucrative payout, despite cost cuts and layoffs. The departing CEO faced calls to surrender some of that money in light of similar moves made by executives at other North American companies in recent months.

However, the questions on his severance were mainly fielded by Torstar chairman Frank Iacobucci, who said Mr. Prichard's payout was a contractual arrangement the company is required to fulfill. The severance has been held up as one of the more controversial pay packages in Canada at a time when such deals are increasingly considered in poor taste given job cuts and falling stock prices.

“The CEO has a contractual right to receive severance, and the board honours that contract,” Mr. Iacobucci told shareholders. “The board unanimously determined that the arrangement was in the best interest of the company.”

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