Earlier this week, Home Capital Group Inc. announced that three veteran business executives will be joining its board effective immediately.
The alternative lender’s board appointments of Canadian Coalition for Good Governance founder Claude Lamoureux, former Ontario Municipal Employees Retirement System CEO Paul Haggis, and former Bank of Montreal senior vice president of real estate Sharon Sallows came amid news that it has used $1.4-billion of its $2-billion credit line and suspended its quarterly dividend to shareholders.
“I think this is an organization that needs help, and I’m willing to help,” according to Lamoureux , who previously served as chief executive of the Ontario Teachers’ Pension Plan.
“To me, this is an important organization in Canada, and I’m willing to lend a hand,” he told The Globe and Mail. “Where did they get in trouble? Not telling the truth right away. To me, it’s simple in life – you just have to tell the facts, and people can see if they are bad facts or good facts.”
Home Capital added that independent director Brenda Eprile has been appointed chair, while former chair Kevin Smith will remain a director.
“I took on the role as chair because I believe in the fundamental premise of Home Capital, which is to assist home buyers, many of whom are new Canadians, to obtain mortgage financing and achieve their dream of home ownership,” Eprile stated.
Analysts such as Jeff Fenwick of Cormark Securities Inc. lauded the lender’s move to incorporate directors with relevant expertise into its board.
“This is a very high calibre of new members,” Fenwick said. “These additions offer significant credibility to the view that a solution will be found to stabilize Home sufficiently to support an orderly process for pursuing the best strategic options for the firm.”