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