Kinder Morgan Canada Ltd. (TSX:KML) will pay two executives – president Ian Anderson and David Safari, vice-president of the Trans Mountain pipeline – $1.5 million each in retention bonuses if they remain with the company until July 2020.
The offer was made in connection with the federal government’s purchase of the Trans Mountain pipeline.
“On May 28, 2018, in connection with the purchase agreement, the board approved awards of retention bonuses by [Kinder Morgan Canada Inc.] to Ian Anderson and David Safari, each a named executive officer of [Kinder Morgan Canada Ltd.],” Kinder Morgan said in the May 29 regulatory filing related to the pipeline purchase.
According to a March 28 Management Information Circular, Anderson and Safari are the company’s “two most highly compensated executive officers.” In that document, Kinder Morgan reported Anderson was paid US$2,268,453 in the seven-month period from May 30 – the date of Kinder Morgan’s initial public offering in Canada – and December 31, 2017. Safari was paid US$1,535,578 over the same period.
Kinder Morgan defended the payment in a statement emailed to Business in Vancouver.
“The arrangements were reviewed and approved by the Kinder Morgan Canada board of directors and are consistent with industry practice for a project and transaction of this size,” a media representative said in the statement.
Half of the bonuses will be paid in July 2019 and the other half a year later.
– with files from Carrie Schmidt