Other voluntary actions taken by senior management
Montreal, June 6, 2021 /CNW/-Air Canada is providing updates on its 2020 salary results and announcing other actions being taken by its senior management.
The following summarizes the key facts about bonus payments and stock appreciation units in 2020.For more detailed information about Air Canada and its board of directors’ practices and executive compensation methods, please refer to the company’s management power of attorney issued on January 1, 2017 May 6, 2021 Available at www.sedar.com.
- The remuneration outcome of all Air Canada employees in 2020 is one of many important decisions made in the best interests of Air Canada and its stakeholders during the pandemic.
- These remuneration results are approved by the board of directors after consultation with external consultants in mid-2020, and are in line with the company’s governance principles and best practices.
- They are consistent with the compensation results of companies that have also suffered significant losses during the pandemic, and comply with all company agreements and any applicable filing or other requirements.
- air Canada Strive to retain as many jobs as possible during the pandemic. Retaining employees is a vital priority to ensure continued operations in this ongoing crisis and prepare for the sustainable development of the pandemic.
2020 salary plan:
- This 10 million USD The bonus plan is designed to provide relief and retention for more than 900 Air Canada employees.It’s worth emphasizing that more than 8 million USD Part of the rewards were given to middle managers (not including senior managers). These amounts are a recognition of their work during periods of severe organizational chaos and high risks.
- In 2020, Air Canada raised some funds through the private sector $8 billion Help stabilize its finances during the pandemic. There is no taxpayer’s money or funds from the Canadian government’s support program to fund these bonus arrangements for Air Canada employees or executives.
- At the beginning of 2020, senior managers and 3,200 managers voluntarily agreed to reduce a total of $11.5 million In their basic salary, they are compensated through stock appreciation units if-and only if-the stock price is higher December 2022 compared to December 2020.
Conclusions and additional actions:
At every step of the process, the management and board of directors act in the best interests of Air Canada and its stakeholders and pay attention to their role in mitigating the consequences of the pandemic.Throughout 2020, Air Canada will accordingly seek to do its part by taking repatriation flights to bring stranded citizens home, and operating cargo flights to bring much-needed personal protective equipment to Canada And in a leading position in biosafety medical research and protocols, and will continue to do so.
Unfortunately, the public is now disappointed with actions related to the 2020 executive compensation results. In recognition of this and to help resolve this unintended consequence, the current executive vice president and president and CEO of Air Canada have chosen to voluntarily return their 2020 bonuses and share appreciation units.In addition, Calin Rovinescu, the former President and CEO of Air Canada February 2021 The value of his 2020 bonus and stock appreciation units will be donated to the Air Canada Foundation. Read the attached full statement of Mr. Rovinescu.
air Canadian The 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 on vacation as soon as possible.The airline looks forward to continuing to work with all stakeholders, especially the government Canada In many ways, including the safe restart of our industry.
About air Canada
Air Canada is Canada’s largest domestic and international airline, and will be among the world’s top 20 airlines in 2020. It is the flag carrier of Canada and a founding member of Star Alliance, the world’s most comprehensive air transportation network. According to independent British research company Skytrax, Air Canada is the only international network airline in North America to receive a four-star ranking. In 2020, Air Canada was named the “Global Traveler” North America’s Best Airline for the second consecutive year. In January 2021, Air Canada received APEX Diamond certification for its CleanCare+ biosafety program for managing COVID-19. It is the only airline in Canada to receive the highest APEX ranking. Air Canada is also committed to achieving net zero emissions targets for all global operations by 2050. For more information, please visit: aircanada.com/media, Follow Air Canada Twitter with LinkedInAnd join Air Canada Facebook.
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