Magna’s neo-con chairman on way out

The Globe and Mail:

Chairman Mike Harris, who came under fire for his stewardship of an $865-million buyout of founder Frank Stronach, will resign from the board along with two other directors who joined Mr. Harris on a committee that examined the controversial buyout but refused to make a recommendation on it.

Mr. Harris, who was Magna’s lead director when the buyout of Mr. Stronach’s controlling stake was announced, was elected chairman after Mr. Stronach stepped down last year.

He became a lightning rod for criticism of the deal, which included an Ontario Securities Commission hearing where the former Ontario premier revealed he did not make a counter offer to Mr. Stronach, suggested by the board’s advisers, that would have cut his buyout to about $470-million.

Shareholders ultimately voted in favour of the transaction but there was strong opposition.

Mr. Harris received compensation of $684,930 last year as chairman. A new chairman will be elected from among directors at a board meeting following the annual meeting.

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