{
  "docId": "019dd923-622c-750b-8b98-d4565c313b68",
  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 96,
  "pageCount": 108,
  "prevPage": 95,
  "nextPage": 97,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 18,
  "notes": "Uses a red arrow to visually connect the company's reported STIP earnings to the adjusted calculation, highlighting a $44 million delta.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "big_number"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-d4565c313b68/96",
  "deckHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-d4565c313b68#slide-96",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.48,
        "x": 0.02,
        "y": 0.77
      },
      "kind": "callout",
      "text": "Based on our calculation of Adjusted Net Income, management would have been below the threshold of $690m required to receive a bonus under CTC's STIP",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "87b9306f-2e8e-4061-82fb-13982ad96b05",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.28,
        "x": 0.62,
        "y": 0.77
      },
      "kind": "callout",
      "text": "$44 million Delta",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b1ace404-72e5-4bb9-94f6-18c2a827c0dd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.77,
        "x": 0.21,
        "y": 0.89
      },
      "kind": "framework",
      "text": "Canadian Tire needs better disclosures regarding the calculation of its executive compensation plan",
      "attrs": null,
      "subkind": "instance",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "077846ca-8d42-415b-981d-24587e7784d9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "STIP earnings: $44 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee3b-7248-a1a5-fda3cf7dd320",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.96,
        "x": 0.02,
        "y": 0.185
      },
      "kind": "paragraph",
      "text": "We believe there may be a meaningful gap between STIP earnings and CTC's true organic earnings power. The company does not provide adequate disclosure of its calculation for STIP earnings. Based on the disclosed gap, we believe there are a number of items not being accounted for, driving higher compensation for executives.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bf757ca0-0079-4a3e-bb3b-bb3548d9bed3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.27,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Company financials, Spruce Point analysis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a8617ed0-a037-477b-a933-992722162224",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.43,
        "w": 0.435,
        "x": 0.545,
        "y": 0.305
      },
      "kind": "table",
      "text": "Spruce Point Adjusted Net Income table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "06387536-0014-447d-bf43-c65b7bc39ac6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.485,
        "x": 0.02,
        "y": 0.305
      },
      "kind": "table",
      "text": "2018 Compensation table showing Threshold, Target, Maximum, and Payout %",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1f077330-4f50-4c5c-93db-2d820ae0a32a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.44,
        "x": 0.065,
        "y": 0.54
      },
      "kind": "table",
      "text": "Company Reported STIP Earnings table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4c3c02a4-2465-42a5-aa63-d540ed01c402",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.035,
        "w": 0.388,
        "x": 0.306,
        "y": 0.055
      },
      "kind": "title",
      "text": "Unclear Calculation Of Compensation",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2412c1f2-c531-42cc-ad7b-ce8213861e50",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "b7313575-f9a6-4726-a754-069cd40382fd",
      "evidence": "The slide explicitly claims an 'unclear calculation' and 'meaningful gap' to suggest management is manipulating compensation metrics.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}