Resolute Forest Products changes executive compensation to reflect relative currency value of each executive's country of residence, as of June 1, 2014, resulting in pay hike for those in Canada and pay drop for one in US; base salary raise also approved
Debra Garcia
June 20, 2014
(Edgar Glimpses)
–
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
On June 18, 2014, the independent members of the board of Resolute Forest Products Inc. (the "Company") approved a change to the terms of employment of each executive officer, including each current named executive officer, concerning the manner of computing compensation. The base salary and the other components of compensation for each had been established and paid in the executive officer's currency of residence (Canada for all executives but for one in the U.S.). In order to better reflect the effect of changes in the relative value of those currencies, effective as of June 1, 2014, compensation payments to executive will be deemed awarded partly in Canadian dollars and partly in U.S. dollars, based on the ratio of the Company's pulp and paper capacity in Canada relative to the U.S. Unless an executive elects to receive the payment, or a portion of the payment, in the currency of its determination, compensation will be payable in his or her local currency. In light of current conditions, this change to the terms of employment is expected to represent on an annualized basis an approximately 4% base salary increase for each executive officer based in Canada, including each named executive officer, and a reduction of approximately 4% for the U.S. based executive officer. Based on the board's annual review of performance and compensation, the independent members of the board, acting on the recommendation of the human resources and compensation / nominating and governance committee, also approved an ordinary course base salary increase for each executive officer, including each named executive officer.
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