Commentary on Enbridge coming later tonight, but for now : More trouble for SNC Lavalin

Posted on by Laila

SNC Lavalin is facing more problems today, as the World Bank temporarily bans one of it subsidiaries from bidding on any new contracts while it continues its investigation.

SNC-Lavalin Unit Debarred By World Bank

Of course, this is just another bad day for the engineering giant that has been the subject of an RCMP raid,several scandals as well as a class action lawsuit filed by investors earlier this year. For the full meal deal on all the problems of SNC, head over to this previous blog post:

“Moral hazard is when they take your money and then are not responsible for what they do with it.”~ Gordon Gekko

** update : Enbridge post will be up tomorrow am. Frankly, I was so angry I thought best to sleep on it before posting…

One thought on “Commentary on Enbridge coming later tonight, but for now : More trouble for SNC Lavalin”

  1. Wow, in whose world can you not account for millions of dollars, be removed as CEO of corporation under RCMP investigation… and still get a $5million dollar golden handshake… HT to Kim Poirier for this heads up!!!

    http://www.cbc.ca/news/business/story/2012/04/03/snc-lavalin-duhaime-severance.html

    “SNC-Lavalin is paying former chief executive Pierre Duhaime nearly $5 million as a golden handshake after relieving him of his duties last week.

    The 57-year-old will remain an SNC employee until June 27 but have no responsibilities or perform any policy-making decisions, the Montreal-based company said in a regulatory filing ahead of its May annual meeting.

    SNC-Lavalin said Duhaime was taking his retirement after he was relieved of his duties for approving $56 million in payments to undisclosed agents.

    His departure package includes the payment of $1.9 million in salary continuance over two years beginning in June.

    He will also receive $115,500 in benefits, $550,000 in professional development and transition assistance.

    Although the board decided not to award Duhaime a bonus for 2011, he received 77,100 stock options valued at $1.7 million in May before an independent review was completed.

    The value of two years of pension payments he can access in 2014 is $921,000.

    SNC-Lavalin said Duhaime’s total compensation last year was $2.7 million. That included a base salary of $950,000 which increased 62 per cent from when he became CEO in 2009.

    In light of a $17.9-million reduction in its 2010 profit, the company is clawing back bonuses paid to two senior executives involved in the payments.

    Duhaime is required to reimburse $184,000 in payments, while former executive vice-president Riadh Ben Aissa will be docked $42,800.

    On the Toronto Stock Exchange, SNC-Lavalin’s shares closed down 55 cents at $40.20.

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