Alignvest places Sagicor regional heads on three-year contracts
Alignvest Acquisition II Corporation, the Canadian entity seeking to acquire Sagicor Financial Corporation, has negotiated initial three-year contracts with the country heads in Barbados, Jamaica and the United States, with an automatic one-year renewal for successive periods.
The base pay of the three executives combined will be US$1.58 million per annum, 45 per cent of which will flow to Sagicor Financial's Group President and CEO Dodrige Miller, but whose compensation will be adjusted after the first year, Alignvest said in market filings.
"Overall, the value of Mr Miller's total compensation is expected to be substantially less for the year ended December 31, 2019, than for the year ended December 31, 2018," Alignvest said.
The other two executives covered in the filings are Christopher Zacca, who oversees the operation in Jamaica, and Bart Catmull, who is in charge of the US market. The compensation package for Miller includes stock options; and cash bonus incentives and other benefits for Zacca and Catmull.
To incentivise Miller to take the pay cut, Alignvest said the group CEO would be entitled to a seven-figure payout, with "a one-time lump sum cash payment equal to US$1.3 million in consideration".
Alignvest plans to acquire all the shares of Sagicor Financial, delist the company in the three markets in which its trades, that is, Barbados, Trinidad and London, and list New Sagicor on the Toronto Stock Exchange. The transaction is expected to close next year.
Neither Sagicor nor Zacca has responded to requests for comment on the contract arrangements.
"The term of Mr Zacca's employment agreement is initially for three years, with automatic renewal for successive one-year periods, unless either of the parties terminates the employment agreement in accordance with its terms," said Alignvest.
The Canadian firm is still to iron out employment details for at least two other executives, Chief Operating Officer Ravi Rambarran and Chief Financial Officer Andre Mousseau, but said it expects to finalise their arrangements prior to the completion of the takeover of Sagicor.