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These bonuses from the top executives of Air Canada irritate you

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Alan Binder
Alan Binder
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These bonuses from the top executives of Air Canada irritate you

Posted on June 5, 2021

An Air Canada plane on the tarmac at Pearson International Airport in Toronto.Photo: The Canadian Press/Nathan Dennett

The House of Commons on Thursday blamed Air Canada’s management for bonuses paid to top executives, while the federal government will pay $5.9 billion to the company, which lost $4.6 billion and laid off more than 21,000 employees. . ” [C’est ] Gluttony, gluttony, arrogance. Anyway, one thing is for sure: It’s totally unethical, and totally unacceptable,” downs Xavier Barsalou-Duval, Bloc Québécois transportation critic. Bloc Québécois is asking Air Canada executives to pay their bonuses and the government to withhold aid promised by the company. .

François Dauphin, CEO of the Institute for the Governance of Private and Public Enterprises (IGOPP), recalls that a year ago, government assistance to Air Canada was not made public and that the company wanted to ensure that “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 certainly had to show greater restraint,” François Dauphin analyzed. The Compensation Committee and the Board will have to find a way to compensate fairly quickly. “

Government assistance requires a certain responsibility, says Evan Choturian, professor of economic law at Laval University and head of compensation analysis at the Interdisciplinary Laboratory for Corporate Social Responsibility (LIRSE) at this law school. He believes that the spirit of the law has been set aside. The research shows that “top leaders operate in a sometimes disconnected world.” It is difficult to force legislation to regulate this kind of situation, and Ivan Choturian believes more in changing the ruling.

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