These bonuses from senior Air Canada executives that disturb
Posted on June 5, 2021
An Air Canada plane is on the tarmac at Pearson International Airport in Toronto.PHOTO: The Canadian Press / Nathan Denette
The House of Commons on Thursday blamed the management of Air Canada for the bonuses paid to its senior executives, while the federal government will pay the company $ 5.9 billion, which it lost $ 4.6 billion and that it has laid off more than 21,000 employees. ” [C’est ] gluttony, gluttony, arrogance. In any case, one thing is certain: it is completely immoral, completely unacceptable, ”drops Xavier Barsalou-Duval, Bloc Québécois transport critic. The Bloc Québécois is asking Air Canada executives to reimburse their bonuses and that the government withhold the aid promised to the company.
François Dauphin, CEO of the Institute on the Governance of Private and Public Organizations (IGOPP), recalls that a year ago, government assistance to Air Canada was not yet announced and that the company wanted to ‘ensure that “the leaders do not leave the ship”. However, at the end of the year, the situation improved thanks to government assistance. “This is where we may have lacked judgment or we should certainly have shown much more restraint,” analysis François Dauphin. “The compensation committee and the board will have to find a way to make amends fairly quickly. “
Ivan Tchotourian, professor of economic law at Laval University and head of compensation analysis at the Interdisciplinary Laboratory on Corporate Social Responsibility (LIRSE) at this law faculty says that government assistance requires a certain responsibility. He believes that the spirit of the law has been put aside. Research shows that “senior leaders operate in a world that is sometimes disconnected,” he explains. Legislation to regulate this kind of situation is difficult to impose, and Ivan Tchotourian believes more in a change in governance.