Pay contract terms of Childers leaked

The president of Potash Corp. of Saskatchewan has a 5-year contract which pays him $700,000 per year. Details of C.E. Childers’ salary agreement with the Saskatchewan government were recently leaked to the opposition. The annual salary is mainly in the form of bonuses, including stock options. The contract contains a clause to reimburse Childers, a native of the U.S., for Canada’s higher tax rate. Payment terms for the entire length of the contract will be honored if Childers is dismissed for any reason other than defrauding the company.

Childers became president of the huge potash producer in 1987. The provincial government privatized the company in 1989 but remains the major shareholder.