Who are the best paid bosses in Quebec and the most generous companies towards their leaders? La Presse draws up its annual list.
MARTIN VALLIERESTHE PRESS
We have reopened the floodgates!
The pause in the growth of executive compensation that had manifested itself during the three years of the pandemic is well and truly over.
In fact, the growth of multi-millionaire compensation has resumed with renewed vigor as the economy quickly recovers, stock markets recover, and high inflation inflates corporate earnings and profit numbers.
In Quebec alone, shows the annual survey carried out by La Presse , a dozen companies whose stock market value is more than 500 million dollars have increased the value of total compensation by more than 20% (salaries, bonuses and other benefits ) granted to their senior executives for the 2022 financial year.
A special case ?
At Air Canada, the value of the compensation of the five most senior executives almost tripled (+ 181%) to reach $23.14 million.
While Air Canada's accounting results recovered strongly with the post-pandemic recovery (revenues rebounded 158%, to 16.5 billion, net loss halved, to 1.7 billion), it is the end of the restrictions linked to the Canadian government's financial assistance to air carriers during the pandemic which caused a considerable rebound in the compensation of its five most senior executives, which had been lowered by nearly 55% the previous year.
PHOTO ALAIN ROBERGE, LA PRESSE ARCHIVES
Michael Rousseau, President and CEO of Air Canada
At the same time, nearly fifteen presidents of these largest companies headquartered in Quebec and listed on the stock exchange benefited from an increase of more than 20% in their total compensation during the 2022 financial year.
Among them, four presidents benefited from a more than 100% increase in their remuneration compared to the previous financial year in 2021.
Special cases?
PHOTO ROBERT SKINNER, LA PRESSE ARCHIVES
Jean-Paul Chauvet, CEO of Lightspeed Commerce
At Lightspeed Commerce, a specialist in e-commerce management systems, the compensation granted to the CEO, Jean-Paul Chauvet, was multiplied by 19 times (+ 1803%), to 27.6 million dollars, following an exchange of functions with his colleague Dax Dasilva, now chairman and director of the board of directors.
At Air Canada, the president and CEO, Michael Rousseau, is the main beneficiary of the considerable rebound in the compensation of senior executives. Established at 12.37 million, his total compensation for the 2022 financial year more than tripled (+ 233%) over one year; which earned him a place in the top 15 of the most richly paid presidents of Quebec inc. in stock exchange.
Indignation
“Obviously, the rapid economic upturn that we experienced at the end of the pandemic put an end to the restraint that seemed to prevail among senior company management with their remuneration during this period of great socio-economic anxiety, notes Franois Dauphin, CEO of the Institute for Governance of Private and Public Organizations (IGOPP).
PHOTO DAVID BOILY, LA PRESSE ARCHIVES
Franois Dauphin, CEO of the Institute for Governance of Private and Public Organizations
"However, in an economic context where the general public must deal with budgetary difficulties linked to high inflation and the sharp rise in interest rates, such a rebound in the compensation of senior executives generates a higher level of indignation in public opinion and in the political world,” noted Mr. Dauphin during a discussion with La Presse .
At the Toronto-based organization SHARE (Shareholder Association for Research and Education), Anthony Schein, director of shareholder advocacy, notes that the strong rebound in executive compensation also accentuates "the level of disconnection" with the average compensation of employees.
PHOTO PROVIDED BY SHARE
Anthony Schein, Director of Shareholder Advocacy at the Shareholder Association for Research and Education
As these workers and the general public face an inflationary crisis on their living costs, this rebound in executive compensation may fuel popular resentment of these economic inequalities, to the point of heightening the risk of tensions. social and political.
Anthony Schein, Director of Shareholder Advocacy at SHARE
Positive trends
That said, corporate governance analysts point to “encouraging trends” in the management of executive compensation policies.
For example, large institutional investors and the asset managers of large pension funds continue to step up their interventions in companies when they see problems in their executive compensation policy.
At the same time, notes Franois Dauphin of the IGOPP, we observe a “slow decrease” in the still high percentages of general approval of the compensation policy for senior executives, during advisory votes at shareholders' meetings.
“This trend is becoming increasingly disturbing for corporate boards and senior executives. It can even create a risk of reputational damage for the company, especially among its customers and employees. »
ESG criteria
In addition, corporate governance analysts pay particular attention to the introduction of “ESG” type criteria (environment, society, governance) among the objectives and performance measures of executive compensation policies.
Among other things, we are expecting the first statement of ESG financial accounting standards from the international organization ISSB (International Sustainable Standard Board) in the coming months.
"The forthcoming arrival of these ISSB accounting standards should facilitate the quantification of ESG objectives and results, which could clarify their integration into the compensation policies of senior executives", predicts Michel Magnan, professor- researcher in accounting and governance at Concordia University's Molson School of Management.
Mr. Magnan is also co-author of a study published these days which also notes the difficulties of including ESG objectives that are still too little quantified in the compensation policies of senior executives.
"For example, compensation policies are largely based on short-term objectives and performance measures, while objectives related to ESG criteria are more focused on the medium and long term", explains Mr. Magnan during an interview with La Presse .
American standards?
In addition, we follow the evolution in the United States of the recent standards of the Securities Exchange Commission (SEC) concerning quantified information in the compensation policies of senior executives.
Among other things, listed US companies must publish a multiple of the total compensation of their top executive compared to the average compensation of their employees.
Also, American companies must now differentiate the amount of compensation actually paid during the year from the amount of total compensation. The latter includes, in particular, bonuses in capital securities, the receipt and value of which are conditional on the achievement of future results, and which may therefore never be paid.
"For the moment, the effect of these SEC standards on the evolution of senior executive compensation policies is not very conclusive compared to expectations," notes Franois Dauphin, of IGOPP.
“So I expect a one to two year period of 'watchdog' in this regard among corporate governance stakeholders in Canada. In the meantime, their priority remains the integration of ESG criteria and diversity standards among senior management and corporate boards in Canada. »
The five highest paid executives
YUVAL ZIV
President of Nuvei
Total compensation
28.35 million
Change over one year
- 12%
JEAN-PAUL CHAUVET
CEO of Lightspeed Commerce
Total compensation
27.6 million
Change over one year
+ 1803%
PHILIP FAYER
Chairman of the Board and CEO of Nuvei
Total compensation
20.9 million
Change over one year
- 85%
THOMAS J. APPIO
New CEO of Bausch Health
Total compensation
17.12 million
Change over one year
+ 34%
SERGE GODIN
Executive Chairman of the Board of CGI
Total compensation
13.8 million
Change over one year
+ 26%
The list of pay rises
How has the compensation of the senior executives of the main companies of Qubec inc. on the stock market for a year? The highlights of the annual compilation made by La Presse .
Nearly fifteen presidents of Qubec inc. on the stock exchange benefited from an increase of more than 20% of their total compensation (salaries, bonuses and other benefits) during the financial year 2022. And among them, four presidents benefited from an increase of more than 100% the value of their total compensation compared to the previous financial year in 2021.
This year's record goes to Jean-Paul Chauvet, CEO of e-commerce management systems company Lightspeed Commerce. The value of his total compensation, which is comprised mostly of stock bonuses and future stock options, increased 19 times to $27.6 million. This considerable bonus was granted to Mr. Chauvet for his appointment as CEO, replacing Dax Dasilva, now Chairman and CEO of Lightspeed Commerce.
JEAN-PAUL CHAUVET
CEO of Lightspeed Commerce
PHOTO ROBERT SKINNER, LA PRESSE ARCHIVES
Jean-Paul Chauvet
E-commerce management systems
Total compensation in 2022
27.6 million
(+ 1803% or 19 times)
Lightspeed revenue in 2022
US$548 million
(+147% over one year)
Lightspeed net loss in 2022
US$26.9 million
(loss of 5.8 million US in 2021)
ROBERTO BELLINI
President and CEO of Bellus Health
PHOTO FROM LINKEDIN
Roberto Bellini
Drug development
Total compensation in 2022
7.65 million
(+243% over one year)
Bellus Health revenues in 2022
US$16,000 (unchanged)
Bellus Health net loss in 2022
76 million US
(loss of 71.4 million US in 2021)
MICHAEL ROUSSEAU
President and CEO of Air Canada