Five months after Laurentian was replaced as head of the bank, former CEO Rania Llewellyn and the Montreal financial institution still have not agreed on the severance payment due.
Rania Llewellyn's departure led to the banking IT disruption at the end of September and a potential sale was ruled out after a review of strategic options.
The amount of his termination compensation is yet to be defined, the bank indicated in its management circular published this week ahead of the April 9 shareholder meeting.
When replacing her in early October, the bank said she was “departing immediately,” but the firm was more aggressive this week, suggesting she had been fired as president and CEO. It is also stated that his employment relationship ended on October 30.
Despite being fired in early October, the job has seen some continuity.
Called for clarification, the bank told Law Press it was simply “working on a resolution with its ex-CEO.”
Rania Llewellyn could not be reached for comment.
Severance pay is a multi-million dollar question.
Rania Llewellyn is entitled to a $4.5 million severance payment in the event of a termination without cause, according to a pay summary table submitted last year.
According to François Dauphin, president of the Institute on Governance, there may be particular problems with regard to the treatment of retirement benefits and incentive plans linked to annual results. “The elements must be accounted for and the amounts paid in the months following the end of the financial year.”
Rania Llewellyn's salary in 2023 was $780,000, an increase of 12% from 2022. She received total compensation of $2.7 million for the entire 2023 fiscal year, which decreased to $3.6 million in 2022.
It is rare to see sudden CEO changes in the Canadian banking sector. These changes are usually telegraphed several months in advance.
Photo provided by Laurentian Bank
Rania Llewellyn
Rania Llewellyn's predecessor as head of Laurentian – François Desjardins – also abruptly left his post. His departure was announced in June 2020. He is 49 years old and the bank has indicated that he is retiring. The bank was led by an interim CEO for several months before the appointment of Rania Llewellyn.
Rania Llewellyn will lead Laurentian for a three-year term from October 2020 to October 2023. It is noteworthy that during this period, the bank employees union was dissolved.
A week before the end of September a routine update went wrong and the computer crashed. The firm was plunged into crisis, during which the bank sacked Rania Llewellyn.
Laurentian Bank has been headed by Eric Provost since that time. A management circular revealed that his total compensation for fiscal year 2023 will reach 2.6 million.
Eric Provost announced last week during a presentation of the bank's early-year performance that he is seeking to further simplify the financial institution's structure. A revised strategic plan is in preparation and should be presented in late spring. He said the plan should allow the bank to focus on “win-win” areas to enhance its competitiveness while simplifying the way it meets customer needs.
Analysts and investors are looking forward to this plan to fully understand what Laurentian Bank will be like in the future and what its potential is.
