Magna to End Consulting Fees to Founder Stronach

Magna International Inc., which paid founder Frank Stronach US$52 million in consulting fees last year, says such payments will not be "renewed, extended or replaced" at the end of 2014, Reuters reports.

Stronach was paid about $900 million to give up control of the company in 2010. But he received another $137 million in consulting fees in the three years since then.

Magna says it will trim its profit-sharing cap for senior managers to 3% of pre-tax profit half the current proportion in January 2015. The company describes the move as intended to assure its shareholders that the profit-sharing Stronach received in the past won't be allocated to anyone else.

The company says CEO Don Walker received about $19 million in compensation last year.