After a strong protest, Air Canada said its executives returned bonuses

Air Canada stated that its senior executives have chosen to return 2020 bonuses in response to “public disappointment.”

The airline said In the press release The President and CEO of Air Canada and the Executive Vice President have voluntarily returned bonuses and shared appreciation units.

Former President and CEO Calin Rovinescu, who retired in February 2021, stated that he will also donate his shares to the Canadian Aviation Foundation.

The statement does not include mid-level managers whose bonuses amounted to more than US$8 million in the US$10 million bonus plan.

On Wednesday, Treasury Secretary Chrystia Freeland (Chrystia Freeland) said she was dissatisfied with the multimillion-dollar package to airline executives when the company negotiated a federal rescue plan, calling the bonuses “inappropriate.”

Last Monday, the airline disclosed its annual agency notice to shareholders, which provided bonuses to investors. The document stated that the document has played an important role in the survival of the airline in the past year because of the COVID-19 Air travel plummeted during the pandemic.

The statement on Sunday said: “Air Canada’s leadership team is fully focused on Air Canada’s recovery from the COVID-19 pandemic and is ready to welcome back colleagues and traveling customers as soon as possible.”

“The airline looks forward to continuing to work with all stakeholders, especially with the Canadian government in many ways, including [on] A safe restart of our industry. “

Outcry after government aid plan

In April, the airline and the government agreed to a US$5.9 billion loan program, which includes funds to help refund tickets, but within 12 months of the full repayment of the loan, executive compensation is capped at US$1 million.

The government also spent 500 million Canadian dollars to buy a 6% stake in the country’s largest airline. Freeland said that this was done to ensure that once normal travel resumes, Air Canada’s revenue increases and taxpayers can benefit from it.

At the beginning of 2020, senior managers and 3,200 managers voluntarily agreed to reduce a total of $11.5 million in base salary, but they must be compensated by stock appreciation units. If the stock price rises in December 2022, employees may be allowed to recover part of their forgone wages. The company Said that it will exceed December 2020.

Freeland and Transport Minister Omar Alghabra stated that Canadians “expect responsible corporate behavior by companies that receive government financial support during the pandemic, especially when it comes to executive compensation. correct.”

In a joint statement issued on Sunday evening, the ministers stated: “Although Air Canada could have avoided this altogether, we acknowledge that the top five executives took this step in the right direction to reimburse them. Bonuses and stock appreciation units for 2020.”

Source link