Quebecor World, Canada's biggest printer, awarded Chief Executive Officer Pierre Karl Peladeau stock options valued at $6.71 million last year as he led the company to a profit.
The 43-year-old Peladeau, whose family controls Quebecor World and parent Quebecor Inc., got total cash compensation of about (U.S.) $2.61 million in 2004 and was awarded 1 million Quebecor World stock options in June, the Montreal-based companies said in regulatory filings last week.
Quebecor operates a printing plant in Depew, N.Y., that employs about 900.
Peladeau stepped in to rejuvenate the printer in March 2004 after it reported losses in 2003. After closing factories and cutting costs, Quebecor World had net income of $115.60 million, or 64 cents a share, in 2004, compared with a net loss of $25.26 million, or 40 cents. The number of options Peladeau received was tied to the earnings performance, the company said.
Bloomberg News valued Peladeau's 1 million options at $6.71 million on their grant date, using the Black-Scholes pricing formula, a 10-year term, a stock-volatility rate of 28.46 percent and a comparable U.S. Treasury yield for the risk-free interest rate. Bloomberg News discounted the result by 27.5 percent to adjust for vesting restrictions and the inability to be traded.