TORONTO (Reuters) — Tim Hortons's chief executive will get a $1 million bonus following the $12.64-billion takeover deal by Burger King Worldwide, the Canadian coffee and donut chain said in a regulatory filing on Monday.
Burger King agreed to buy the Canadian company in August in a transaction that will create the world's third-largest fast-food restaurant group. The Canadian government approved the takeover, which will create a new company based north of the border, last week.
The company said the discretionary bonus for CEO Marc Caira was awarded due to a substantially increased workload as a result of the merger deal and strong quarterly results that beat market expectations.
After a transition period, Caira will cede his CEO position to Burger King's chief executive Daniel Schwartz, who will run the combined company.
Cynthia Devine, the company's chief financial officer, was awarded a $500,000 bonus and Frank Iacobucci, the board's lead director was also awarded a special $100,000 recognition bonus.
Tim Hortons said the rewards were within the range of market data for bonuses in similar circumstances.
Last year, Caira's total compensation was $3.4 million, including a base salary of $451,494.