RE:RE:RE:RE:RE:ALPA posturing, NOT Historic 😵💫wprkradio;
Interesting POV. You do realize that the executives at AC use American, Delta, Southest, Alaska and other large US and NA companies as the comparator for their salaries, right? Not a single company from outside North America. If it's fair to use these companies as comparator for the executive suite why not for the employees?
Air Canada is not only the largest carrier in Canada, but also the only global carrier in Canada. For most companies, especially larger enterprises, sound corporate governance dictates that BODs consider candidates not only internally but also externally when a CEO, COO, CCO, CFO or other executive officer is to be recruited. For example, the last two WestJet CEOs were not recruited from NA airlines, and many of its EVPs have come from either the US or outside NA. Likewise, it would not make sense for Air Canada to limit its search to WestJet or other smaller airlines in Canada for suitably qualified executives.
With one or two exceptions, Air Canada has typically recruited executive officers from US airlines, when external searches have been conducted. In fact, since the early 1990s, more Americans than Canadians have served as CEO of Air Canada, and many more Americans have occupied other executive officer roles. Montie Brewer, formerly of United, was brought in as Chief Commercial Officer and was subsequently promoted to CEO, Sean Menke, also from United, was recruited into the CCO position left vacant by Brewer; and both Lamar Durrett, formerly of Delta, and Robert Milton were EVPs before becoming CEO in the '90s.
A quick review of 2023 CEO salaries show that the Air Canada CEO salary when converted into USD is similar to the three US legacy CEOs, in the $1 million USD range. However, when it comes to total compensation, bonuses, stock options, etc, a significant disparity exists with the US counterparts. The Delta CEO’s total compensation was $34 million, United’s CEO, $18.6 million and American CEO, $31.4 million, considerably more than the Air Canada CEO total compensation of about $9 million (converted into USD). Most of this other compensation is performance-based.
For non-executive Air Canada management in the US, these positions are normally occupied by Americans, and are paid at competitive US rates. However, most of Air Canada’s management and unionized employees work in Canada and their compensation is competitive with Canadian companies within the industry as well as in other industries. At these levels, Air Canada does not recruit outside the country, although there are exceptions, usually at the senior management level, if a person with a specific background is needed, and no suitable candidate exists in Canada.
Since Air Canada and other Canadian airlines are recruiting pilots, flight attendants, gate agents, mechanics, etc., only from within Canada does it not make sense that pay rates for these professions/occupations be competitive but ultimately determined within the Canadian economic context?
When all is said and done, Air Canada as the industry leader should be the carrier that sets the standard for attracting the best talent in the country.
Cheers!
factoman