One by one, they were called in.
Every May, investment bankers, traders and analysts at Canaccord Genuity Group Inc. are invited to private meetings to discuss their annual bonuses. This year, chief executive officer Dan Daviau had a surprise in store for his senior team.
Worried about the possible departure of key employees after a rough 18 months at the independent investment bank, Mr. Daviau introduced a catch to last year's bonus. To receive their cheques, top staff would have to commit to staying at the dealer for a full year. Anyone who left in the next 12 months would be required to pay back the money in full.
Few things infuriate people on Bay Street more than someone toying with their compensation. Making matters worse, this new policy – implemented retroactively – was highly unusual at a Canadian investment bank.
The backlash was swift. One affected employee likened the new condition to "being held hostage." A band of investment bankers, which sources say included top performers Justin Bosa and Sanjiv Samant, refused to sign the paperwork.
Following a short standoff, Canaccord's executives came back with an alternative proposal, allowing bankers to receive half their bonus in cash and the balance in stock that would vest over three years. But the damage had been done. As of this week, Mr. Bosa and Mr. Samant no longer work at Canaccord, having departed for new roles at larger, bank-owned dealers. (Both men declined to comment for this story.) A third banker, Brent Layton, has also left the brokerage.
The three joined a wave of recent departures at the firm. Since January, Canaccord has parted ways with co-head of investment banking Jens Mayer, M&A banker Rob Fedrock, mining banker Ali Pejman, treasurer Peter Virvilis, and corporate development head Scott Davidson, among others.
The moves follow a sudden leadership change that began with a tragedy. In April, 2015, former CEO Paul Reynolds – successor to founder Peter Brown and just the second CEO in Canaccord's history – died suddenly after suffering a heart attack while competing in a Hawaii triathlon. While Mr. Daviau had long been tipped as a potential CEO candidate, the company's succession plan was rapidly and unexpectedly accelerated, and he was given the reins at Canaccord last fall.
The transition has not been easy. Story
A public spat over a $1.1-billion deal
Copper miner Nevsun Resources Ltd. is fighting off an occasionally hysterical challenge from rivals in China as it attempts to win shareholder approval this week for a $1.1-billion (U.S.) deal to develop a promising property in Serbia.
The continuing battle contrasts the relatively transparent process that plays out during deals at Canadian public companies with the opaque disclosure that can come with entities based in China.
This conflict – which began in April when Nevsun announced plans to acquire Reservoir Minerals Inc. after Reservoir's board of directors ran an auction that attracted 25 potential bidders – has escalated into a public spat between Nevsun and some of the would-be acquirers.
Unsuccessful bidders for Reservoir included two companies from China, a financial firm named Jing Bao (Asia) Ltd. and smelting company Shandong Xiangguang Group Co. Ltd. (XGC). The two are shareholders in Reservoir, with less than 10 per cent of the company's stock.
Jing Bao and XGC have not made a formal offer for Reservoir, but the pair have campaigned against the Nevsun bid and put forward "non-binding" alternatives. The war of words includes a Jing Bao press release last Friday that opened by calling statements by Nevsun "most extraordinary, ill-conceived and erroneous," then went on to link Vancouver-based Nevsun to human rights violations in Eritrea, where the company has a copper mine. Story
IN CASE YOU MISSED IT
(LAST WEEK'S BEST READS)
Suncor Energy Inc.'s $2.5-billion share issue has left some investment bankers in Calgary feeling jilted. Story
A curving toll road is bringing two of Canada's largest pension funds to Mexico in an investment poised to tap into growth in the country's manufacturing sector. Story
Two months into a strategic review, it's become clear there's no white knight coming to save the day at debt-laden Postmedia. The fate of the country's largest newspaper chain will be decided in a showdown between its two major creditors, a rough-and-tumble New York-based distressed debt investor and a 15-employee bond fund from the Toronto suburbs.
Here's the spoiler alert on how any faceoff would end: The Canadians will win. Story
Full stories are reserved exclusively for Globe Unlimited subscribers. Click here to sign up