Canopy Growth Execs Granted Substantial Raises And Bonuses As Cannabis Co. Loses CA$1.7B In FY 2021

Canopy Growth Corporation's CGC WEED leadership team earned over CA$4 million ($3.2 million) in cash bonuses in fiscal 2021, according to a proxy statement sent ahead of the company's annual general meeting, scheduled for September 14 via webcast. 

The board of the Smiths Falls, Ontario-based company gave five of its top executives, 

including CEO David Klein, CFO Mike Lee, president and chief product officer Rade Kovacevic, chief commercial officer Julious Grant and chief legal officer Phil Shaer, short-term incentive plan bonuses as part of their compensation packages, in addition to salaries and long-term incentive plan bonuses.

The company's long-term incentive plan (LTI) bonuses were awarded June 9, although they are typically awarded in March.

"On a go forward basis, we have determined to fix the regular timing of our annual LTI grants to occur in June of each year, beginning in Fiscal 2022," the proxy noted.

A spokesperson told Marijuana Business Daily in an emailed statement that the company's "executive compensation supports our strategy of attracting and retaining top talent that is necessary to support the company's ambitious growth plans and is structured to ensure close alignment between the interest of shareholders and leadership."

And, it seems that has been the firm's policy for quite some time. Last year, Canopy awarded its CEO position a generous salary bump, according to the U.S. Securities and Exchange Commission amid massive layoffs, while supposedly struggling to contain losses.

Salary Review

CEO Klein's salary was maintained at CA$1.2 million in 2021, though including total compensation it amounted to CA$3.7 million, which consisted of salary, the short-term bonus of CA$2.2 million, plus CA$127,000 in "other" compensation. In addition, executives obtained raises between CA$14,000 to CA$25,000. The company's median employee received roughly CA$58,000 over the period.

Despite the CA$1.7 billion loss Canopy posted in its latest earnings report, the company saw "solid progress" in fiscal 2021, which ended March 31, as per the proxy statement. The company missed its fiscal 2021 goals for net revenue and adjusted EBITDA. However, it achieved its goals for individualized objectives and free cash flow, which was negative $478 million.

Photo: Courtesy of Michael Longmire on Unsplash