Canaccord Genuity Group Inc. has changed course on a controversial bonus payment plan that had irked some of its top bankers.
Last month, The Globe and Mail reported that Canada's largest independent brokerage had informed some of its senior capital markets employees they'd have to commit to staying for the next year as a requisite for receiving their fiscal year-end cash bonuses. Those who left within 12 months would be required to pay back the money. At boutiques, a bonus typically accounts for the bulk of compensation.
According to sources, Canaccord is now offering an alternative that would see senior capital markets employees paid a smaller cash bonus, with the balance paid in stock that will vest over a number of years. Story
Scotiabank's restructuring details
Bank of Nova Scotia cut 650 positions from its Canadian banking and wealth divisions and expects to close as many as 50 branches over the next two years, as it seeks to become a more efficient, digitally focused operation.
The changes were revealed in Scotiabank's second-quarter results on Tuesday, and provided the first details about the bank's restructuring charge announced in May.
"The utility of our branches continues to evolve," Brian Porter, Scotiabank's chief executive officer, said in a call with analysts. "As such, we are digitizing more services and transactions that are delivered through these channels."
The changes are part of a sector-wide shift, as consumers move from traditional branch banking to online and mobile banking, pushing banks to beef up their technology capabilities and cut back on bricks and mortar.
In Scotiabank's case, the changes contributed to a charge of $278-million during the quarter, one of a number of factors that weighed on its financial results.
The bank's profit fell to $1.58-billion in the second quarter, down 12 per cent from last year. Story
Issy Sharp's expansion plans
At a stage in life when most executives are content to rest on their laurels, Four Seasons Hotels Ltd. founder and chairman Isadore (Issy) Sharp is pressing ahead with plans to double the size of the Toronto-based chain while maintaining its lofty service standards.
"We recently opened our 99th hotel … and we will become a company with 150, 200, 250 hotels," Mr. Sharp said during a speech Tuesday to the Canadian Club of Toronto, which gave the 84-year-old executive and philanthropist its annual lifetime achievement award. He said that as the chain expanded, hiring the right staff remains the top priority, and "we will never lose that drive to be best in class."
Mr. Sharp famously launched Four Seasons in 1961 with a small hotel in what was then Toronto's red-light district, going on to expand globally with mid-sized, upscale properties. An architect by training, he explained in his speech that he only entered the hospitality business because he designed an out-of-the-way motel for a friend in 1955, and was stunned by how much money the property made. Story
DAILY DEALS
The sale of Sanjel Corp.'s Canadian assets closed Tuesday despite a last-ditch effort by bondholders to block the transaction. Story
Canada Pension Plan Investment Board has committed $218-million for a round of bonds that are secured by Romanian real estate. Story
HSBC has begun cutting senior posts in its investment banking division in a cull that could lead to dozens of staff worldwide losing their jobs, according to sources with direct knowledge of the cuts. Story
Billionaire investor Carl Icahn said on Tuesday he had acquired a "large position" in Botox-maker Allergan Plc. Story
Sherritt International is asking note holders for a three-year extension on the repayment of $720-million in unsecured debt. Story
(NOT) ON THE MOVE
Michael Pearson, the former chief executive officer of Valeant Pharmaceuticals International, will receive a $9-million severance payment and agreed to a consulting agreement worth hundreds of thousands of dollars, according to a document filed with regulators. Story
IN CASE YOU MISSED IT
Andrew Willis does his best Mark Wiseman impression and offers some advice to new CPPIB CEO Mark Machin. Story
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