Wednesday, January 20, 2010

No raises for Shear Wind bosses during tough year


Salaries for the top executives at Shear Wind Inc., a Bedford renewable energy company, remained unchanged while the company weathered turbulent times.

Michael Magnus, president and CEO, earned a salary of $175,000 in 2009, according to the company’s management circular filed with securities regulators Tuesday.

In addition to his salary, Shear Wind picked up a tab of $56,722 to cover Mr. Magnus’s health club memberships, fees for memberships in professional institutes and group medical plan benefits.

His total compensation was $231,722 in 2009.

The company’s new chief financial officer, William Bartlett, earned $100,000, plus $21,120 for other benefits.

The proxy revealed that Shear Wind’s former chief financial officer, Gary MacKenzie, who resigned on Jan. 19, 2009, did not receive any compensation in connection with performing the duties of his office by agreement with the company.

The proxy is sent out to shareholders prior to the company annual meeting, which is scheduled for Feb. 10 at the Halifax Club.

At the meeting, shareholders will be asked to approve the company’s financial statements for the year ended Aug. 31, 2009.

In the statements, Shear Wind, a publicly traded company formed in 2004, had to pay a $500,000 performance security deposit held by Nova Scotia Power for not delivering wind-generated electricity by Nov. 30, 2009.

The company had to forfeit the cash based on a contract it signed with the utility in April 2008, it reported in documents.

This is tough news for a company that has incurred significant losses over the last three years, including a $628,182 loss last year, according to company documents.

Shear Wind was delayed in starting its proposed $150-million wind turbine park near New Glasgow, called Glen Dhu, because of the collapse in the world credit markets in 2008.

The company, like many others, was unable to borrow the money to finance the project.

Shear Wind had an infusion of cash last month, with a Spanish billionaire investing $27 million in the company and giving the Nova Scotia project a kick start.

The company expects the project to start producing electricity later this year.

Shareholders will also be asked to approve a new nominee to the board of directors from the Spanish company, Inveravante. Jose Fernandez Olano, who spearheaded the acquisition of Shear Wind, has been nominated.


http://thechronicleherald.ca/Business/1163174.html

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