Frank Stronach to give up the chairman’s role at Magna

TORONTO — Frank Stronach plans to step down as chairman of Magna International Inc. (TSX:MG) after the company’s annual meeting this year.

TORONTO — Frank Stronach plans to step down as chairman of Magna International Inc. (TSX:MG) after the company’s annual meeting this year.

Stronach, who is standing for re-election as a director, will be given the title of founder and honorary chairman, the company said in its management proxy circular.

“This is a significant change in the ongoing evolution of Magna, but we are fortunate to still have the continuing benefits of Frank’s insight and advice,” Mike Harris, Magna’s lead director and former Ontario premier, wrote in a letter to shareholders inviting them to the annual meeting.

In a message to shareholders in the company’s annual report, Stronach said the company was in good hands.

“It is therefore the right time for me to step down as chairman, a position I have held for nearly 40 years,” he said.

“The key members of Magna’s executive management are seasoned, widely respected within the automotive industry, and committed to the principles that have made Magna a great company.”

Stronach became one of Canada’s richest people by creating Magna and building it into one of the world’s largest suppliers of auto parts. The Austrian-born entrepreneur and his family trust long controlled the company through multiple-vote shares, but gave up control last year in exchange for about $1 billion in cash and shares, as well as control over a joint venture that will develop components for electric vehicles.

He still owns or controls about 10.6 million Magna shares and 2.7 million options.

Stronach, 78, will continue to serve as a consultant to the company, a role that rewarded him handsomely in 2010 when the company reported a profit of $973 million. Stronach was paid a bonus of three per cent of the company’s pre-tax profits in 2010, but under a deal signed last year, that is expected to be reduced to two per cent by 2014.

Stronach earned a total compensation package worth $60 million last year including a salary of $200,000, $16.5 million in option-based awards, a nearly $40.7-million cash bonus and $2.6 million in other compensation.

That compared with a total compensation of about $2 million in 2009 when Magna reported a loss of $493 million.

Magna chief executive Donald Walker earned a total package worth $15.7 million for 2010, compared with a package worth $5.5 million in 2009.

Earlier this year, Stronach and other top shareholders agreed to give up control of MI Developments, the real estate company that owns many of the factories used by Magna.

Under that deal, MI Developments (TSX:MIM.A) agreed to transfer ownership of a number of U.S. horse race tracks as well as the associated real-estate and gaming business to Stronach as well as about $20 million in cash to operate the business.

Magna’s annual meeting is scheduled to be held on May 4 in Markham, Ont.

Shares in the company were down 37 cents at $46.82 on the Toronto Stock Exchange on Thursday.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on Friday, March 20, 2020. Alberta is set to join three other provinces in exploring the feasibility of small modular reactors as a clean energy option. THE CANADIAN PRESS/Jason Franson
Four provinces to sign memorandum of understanding to explore small nuclear reactors

Alberta, Ontario, Saskatchewan and New Brunswick sign memorandum of understanding

FILE - In this Nov. 17, 2016, file photo, Chris Kempczinski, then-incoming president of McDonald’s USA, speaks during a presentation at a McDonald’s restaurant in New York’s Tribeca neighborhood. On Wednesday, April 14, 2021, McDonald’s said the company will mandate worker training to combat harassment, discrimination and violence in its restaurants worldwide starting in 2022. (AP Photo/Richard Drew, File)
McDonald’s to mandate anti-harassment training worldwide

New standards starting in January 2022

Innisfail RCMP say Brandon Pitts is missing. (Photo contributed)
FOUND: Missing central Alberta man

Innisfail RCMP request public’s help

Grounded WestJet Boeing 737 Max aircrafts are shown at the airline’s facilities in Calgary, Alta., Tuesday, May 7, 2019. WestJet says it will extend its temporary suspension of international sun flights to destinations in Mexico and the Caribbean until June 4. THE CANADIAN PRESS/Jeff McIntosh
WestJet extends temporary suspension of international sun flights until June

Customers with affected itineraries will be notified of cancellations

NATO Secretary General Jens Stoltenberg, right, and United States Secretary of State Antony Blinken participate in a media conference at NATO headquarters in Brussels, Wednesday, April 14, 2021. United States Secretary of State Antony Blinken is in Brussels on Wednesday for talks with European and NATO allies about Afghanistan, Ukraine and other matters. (Kenzo Tribouillard, Pool via AP)
US co-ordinates Afghanistan pullout with NATO withdrawal

Attacks on U.S. troops have largely paused but that Taliban attacks on the Afghans increased

In this Nov. 12, 1995, file photo, Buffalo Bills head coach Marv Levy looks on during the second quarter of the Bills game against the Atlanta Falcons at Rich Stadium in Orchard Park, N.Y. THE CANADIAN PRESS/AP/Bill Sikes, File
Former Alouettes head coach Marv Levy tops 2021 Canadian Football Hall of Fame class

The ‘21 class will boost the Hall of Fame’s membership to 316

Dr. Robert Strang, chief medical officer of health, provides an update on health system preparations in Nova Scotia for the coronavirus that causes COVID-19, in Halifax on Friday, March 6, 2020. Strang says plans are in place to stage the women’s world hockey championship in the province next month with limited spectators.THE CANADIAN PRESS/Andrew Vaughan
Nova Scotia plans to allow limited crowds at women’s world hockey championship

All 10 teams in Halifax and Truro must participate in a 14-day quarantine

”Kim’s Convenience” cast member Andrew Phung poses in this undated handout photo. “Kim’s Convenience” has just ended but Andrew Phung is already “knee-deep in ideas and stories” for his next project, “Run the Burbs.” The Calgary-raised actor, who played comical car-rental employee Kimchee on “Kim’s,” co-created the upcoming comedy series and will star in it as a stay-at-home dad with an entrepreneur wife and two kids. THE CANADIAN PRESS/HO - CBC
‘Kim’s Convenience’ actor Andrew Phung on crafting his own series, ‘Run the Burbs’

‘Run the Burbs’ production could start in the summer or fall

Canisia Lubrin poses in this undated handout photo. Rising literary talent Canisia Lubrin is among the Canadian finalists for the $65,000 Griffin Poetry Prize. The Griffin Trust announced the three homegrown wordsmiths and four international poets on this year’s short list on Wednesday. Lubrin, who recently received the US$165,000 Windham-Campbell Prize, is nominated for “The Dyzgraphxst” (pronounced diss-graff-ist), published by McClelland and Stewart. THE CANADIAN PRESS/HO - Anna Keenan
Rising writer Canisia Lubrin among Canadian finalists for $65K Griffin Poetry Prize

Griffin will award two winners, one international and one Canadian

A prairie fire in the Burnt Lake district. (Photo by Bert Fors via Red Deer Archives)
Michael Dawe: Fires of spring 1931 in central Alberta

Central Alberta has just come through a relatively warm and dry winter… Continue reading

Gwynne Dyer
Opinion: Boris Johnson is to blame for what’s happening in Ireland

Twenty-three years of peace in Northern Ireland, after a sectarian war that… Continue reading

Canada's Sarah Pavan and Melissa Humana-Paredes, fom left, celebrate after winning women's gold medal match against Brazil's team at the Beach Volley Worldtour Major Series, in Vienna, Austria on August 4, 2019. THE CANADIAN PRESS/AP, Ronald Zak
Canada’s world champion beach volleyball duo finally getting games before Tokyo

Canada’s world champion beach volleyball duo finally getting games before Tokyo

Toronto Raptors center Khem Birch (24) gets fouled by Atlanta Hawks guard Bogdan Bogdanovic (13) during the first half of an NBA basketball game Tuesday, April 13, 2021, in Tampa, Fla. (AP Photo/Chris O'Meara)
Bogdanovic, Capela lead Hawks past Raptors 107-103

Bogdanovic, Capela lead Hawks past Raptors 107-103

Most Read