Vancouver's Canaccord Capital Inc. (TSX:CCI) plans to layoff approximately 10% of its staff globally as part of its corporate restructuring.
Senior executives of the investment dealer will also have their salaries cut 10% to 20%.
Both moves come after Canaccord completed a review of its business operations, which was originally announced in May, and, according to the company, result from the rapid deterioration in global capital markets.
During the past few years, the company has ridden the wave of corporate expansion and record capital market highs. It was one of B.C.'s most profitable public companies last year, reporting annual profit of $93.5 million, up from $81.1 million in 2006. Annual revenue rose to $756.9 million from $583.4 million.
Canaccord's senior executives also profited. Three of the company's leaders were among the top five highest paid executives last year. President and CEO Paul Reynolds topped the list. He got $11.2 million in total compensation, up from $7 million in 2006. Company chairman Peter Brown received a 67% pay increase: $8.9 million compared with $5.3 million in 2006.
But what goes up, eventually comes down. In the company's current first quarter, which ended June 30, Canaccord's revenue fell to $172.7 million compared with $245.9 million in 2007's first quarter. Net income plummeted 58% to $16.4 million from $39 million.
Canaccord's share price range during the past week: between $5.35 and $5.85; 52-week high: $18.99; 52-week low: $5.06.