Frank Stronach ripped for real estate deals and not showing at board meetings
The corporate governance problems at Magna International continue—and now there’s a possibility billionaire Frank Stronach could lose his directorship as a result. Investor-advisory firm Glass, Lewis & Co. has recommended shareholders withhold their votes from Stronach as a director for two infractions. First, the firm says Magna sold Stronach and former co-CEO Siegfried Wolf $43 million worth of corporate real estate in 2011 at a loss. (According to Glass Lewis, Magna lost $9 million in a series of deals that, though approved by an independent board and negotiated by Mike Harris, then a director at the company, were “contrary to shareholders’ best interests.”) Second, Stronach missed three of 10 board meetings last year, meaning he hasn’t hit the expected 75 per cent attendance threshold. Shareholder advocates have been criticizing Stronach’s mammoth compensation packages for years, but not showing up for meetings just seems irresponsible. Come on, Frank, you made $61 million last year—the least you could do is make an appearance. [Globe and Mail]
