Former Bank of Nova Scotia chief executive Brian Porter will join the board of Prem Watsa’s Fairfax Financial Holdings Inc., the company says in its proxy circular to shareholders.
Mr. Porter, who stepped down from the Scotia job on Feb. 1 after a decade at the top, will stand for election at Fairfax’s April 20 annual meeting. The 65-year-old spent four decades at the bank. This will be his first postemployment stint as a public company corporate director.
Fairfax directors who are not officers or employees receive an annual retainer of $75,000. There are no additional fees based on meeting attendance. Committee chairs get additional payments of between $5,000 and $30,000 depending on the assignment. Fairfax did not identify the committees Mr. Porter might join.
Fairfax also grants each non-management director a one-time restricted stock award worth about $500,000. The award vests 10 per cent a year, starting on the first anniversary.
Fairfax, an owner of insurance companies and other private investments, has used Scotiabank for investment banking and other services in the past, according to its securities filings. The bank said Mr. Porter will be an independent director, as he does not have any material business or other relationship with Fairfax or Mr. Watsa, the company’s founder.
Scotiabank said in September, 2022, that 52-year-old Scott Thomson, one of its board members and the CEO of construction equipment dealer Finning International Inc., would succeed Mr. Porter. The bank said in its recent proxy circular that Mr. Porter will receive a $1.5-million bonus for his work in February, March and April assisting Mr. Thomson with the transition.
Scotiabank sets target pay for new CEO Scott Thomson $2-million lower than predecessor
Mr. Porter is also chair of the University Health Network board of trustees and chair of the board of governors of Huron University College at Western University.
A retired CEO of a Canadian bank has many opportunities to serve as a corporate director. Louis Vachon, who retired from National Bank on Oct. 31, 2021, has joined the boards of three public companies since then: Alimentation Couche-Tard Inc., MDA Ltd. and BCE Inc. He also has been a director of Molson Coors Brewing Co. since 2012.
David Milstead