Tim Hortons CEO gets million dollar bonus after Burger King deal

Mon Dec 8, 2014 6:15pm EST
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TORONTO (Reuters) - Tim Hortons Inc's THI.TO chief executive will get a C$1 million ($871,460) bonus following the C$12.64 billion takeover deal by Burger King Worldwide BKW.N, the Canadian coffee and donut chain said in a regulatory filing on Monday.

Burger King agreed to buy the Canadian company in August in a transaction that will create the world's third-largest fast-food restaurant group. The Canadian government approved the takeover, which will create a new company based north of the border, last week.

The company said the discretionary bonus for Chief Executive Officer Marc Caira was awarded due to a substantially increased workload as a result of the merger deal and strong quarterly results that beat market expectations.

After a transition period, Caira will cede his CEO position to Burger King’s Chief Executive Daniel Schwartz, who will run the combined company.

Cynthia Devine, the company's chief financial officer, was awarded a C$500,000 bonus and Frank Iacobucci, the board's lead director was also awarded a special C$100,000 recognition bonus.

Tim Hortons said the rewards were within the range of market data for bonuses in similar circumstances.

Last year, Caira's total compensation was C$3.4 million, including a base salary of C$451,494.

($1 = 1.1475 Canadian dollars)

(Reporting by Solarina Ho; Editing by Tom Brown)

A Tim Hortons coffee cup is seen on the ground outside a shop near Times Square in New York August 26, 2014. REUTERS/Brendan McDermid