Severance - Not a big deal!!to close the loop- Per Hexo’s latest proxy last November, St. Louis was entitled to a lump-sum severance payment worth 24 months of salary in the event he was terminated without cause. Such a situation would have amounted to at least CA$1 million in the previous fiscal year.
His employment agreement also contains termination provisions making him eligible for medical, dental and life insurance coverage for two years after the date of termination or until he obtains alternative employment.
The former CEO will be under a noncompetition clause for 18 months.
In addition to the lump-sum severance payment, any termination without cause would mean St. Louis is eligible to receive two times any annual incentive amount earned during the previous fiscal year, plus two times any executive cash bonus earned during the previous fiscal year.
Had the company been profitable, he also would have been eligible for a payout “equal to the bonus of 5% of the corporation’s earnings before tax which would be payable to him over the eighteen month period subsequent to the date of termination calculated on a proportionate basis.”