After less than two years on the job, Kurt Schmidt has retired as the chief executive officer of Cronos Group (TSX: CRON). In connection with the retirement, the company will see a familiar face return to the role as chief executive of the company.
Mike Gorenstein, the former CEO of the company, will be returning to the role of President and CEO of the company, while also maintaining the Chairman role on the firms board. In making the announcement, it was said that “Mike is a visionary leader who knows Cronos better than anyone,” as per Jim Rudyk, the lead independent director.
As part of his appointment, Gorenstein is said to be focused on five areas, which include margin accretive growth in adult-use products, rare cannabinoid development and commercialization, cost cutting, a transition from Peace Naturals, and positioning the company for success in the US market.
With his new appointment, Gorenstein is to be paid a base salary of $775,000 per year, with an annual bonus of up to 150% of the basis salary. In addition, he has received long term incentives of just under $1.9 million, and a one time “sign-on” grant, despite having been a director for two years, of 3.0 million restricted share units that vest in three years.
As part of Schmidt’s retirement, he will receive a lump sum payment of $520,000, as well as a further $11,990 as a means of paying out certain benefits. He is also eligible to receive an annual bonus of $675,027 for the 2021 fiscal year.
Schmidt originally joined the company in September 2020, and at the time was hailed as a consumer goods expert whom most recently had served as CEO of Blue Buffalo Company. His appointment had seen Gorenstein step down from the role of President and CEO, while remaining as executive chairman.
The management changes are said to be effective as of today.
Cronos Group last traded at $4.58 on the TSX.
Information for this briefing was found via Sedar and Cronos Group. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
