The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the March 2, 2005 edition

 

Apr. 2, 2005. 01:14 AM

Dofasco, Algoma CEOs cash in on boom time for steel

Top executives at booming Algoma Steel and Dofasco received big pay increases after their companies reported record results in 2004.

Compensation doubled to more than $4 million for Dofasco chief executive officer Don Pether last year, the company's management information circular says.

Meanwhile, Algoma disclosed in its circular that compensation for chief executive officer Denis Turcotte shot up to $3.15 million primarily because he exercised stock options that totalled $2.51 million.

Pether, who became Dofasco CEO in May 2003, collected salary of $768,900, a bonus of $1.44 million and $102,077 in other compensation.

He also realized $1.81 million from exercising stock options. In 2003, Pether received $2 million in total compensation.

Hamilton-based Dofasco smashed its profit record with net income of $376.9 million as prices and demand for steel soared around the world. Shareholder returns also increased dramatically.

At Algoma, Turcotte received a salary of $503,687, other annual compensation of $137,000 and the $2.51 million from stock options last year, the company revealed in its circular.

Turcotte, who joined Algoma in 2002, did not receive a bonus last year but the Sault Ste. Marie-based steelmaker awarded him 87,500 more stock options. In 2003, Turcotte earned $474,004 in pay and gained 233,477 stock options.

Algoma's profit soared to a record $343.8 million in 2004 because of high steel prices and demand.

Shareholder return on investment also shot up.

A lot of Algoma's business was on the spot market, which allowed it to take advantage of climbing prices in 2004.

Algoma's results capped a remarkable turnaround.

The company emerged from court protection from creditors in 2002. In 2003, Algoma posted profit of $8.4 million.