New Caisse president says no to bonus

The new president of Quebec's pension fund manager is giving up the performance bonus and other perks that usually come with the job.

Former Bell Canada CEO Michael Sabia has been appointed to head Quebec's Caisse de dépôt et placement du Québec.(Ian Barrett/Canadian Press) Michael Sabia sent a letter this week to the chair of the Caisse de dépôt et placement du Québec saying he will renounce bonuses for 2009 and 2010, even if the fund performs well.

Sabia, 55, is also giving up the $235,000 annual pension that he would be entitled to if he stays with the Caisse until retirement age.

Sabia has also refused to claim any severance if he leaves or is fired before the end of his five-year term.

The former head of telecommunications giant Bell Canada Enterprises (BCE) was hired to try and pull the Caisse out of the tailspin that saw the fund manager lose $39.8 billion last year. The loss represented 25 per cent of the fund's total assets.

The assets were $120.1 billion for the year ending Dec. 31, 2008.

Sabia has been under constant fire since taking the position, with critics, including former Quebec premier Jacques Parizeau, saying he does not have the qualifications to run the Caisse during these difficult times.

As head of Quebec's most important financial institution, Sabia will take home an annual base salary of $500,000.