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The Globe and Mail

Air Canada’s Rovinescu sees pay more than double in 2012

Air Canada CEO Calin Rovinescu.


Air Canada chief executive officer Calin Rovinescu's total compensation more than doubled to $9.5-million in 2012 thanks to a $5-million retention bonus.

The airline said Friday in a regulatory filing ahead of its annual meeting that Mr. Rovinescu's pay increased from $4-million in 2011.

Mr. Rovinescu, 57, was eligible for the one-time bonus on the third anniversary of his appointment. One-third of the payment was contributed to an employee benefit plan.

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The payment was a sore point during last year's difficult contract negotiations.

Excluding the bonus, his compensation increased 13 per cent from 2011.

His base salary remained unchanged at $1.4-million, but his cash bonus increased to $1.9-million from $325,000. Share and option-based awards were $925,000, down from $1.95-million. His pension value was $299,600 compared with $320,500.

Mr. Rovinescu was credited among other things for exceeding the pre-tax operating profit target, boosting liquidity levels, completing bargaining and arbitration with employees and announcing the launch of low-cost carrier Rouge.

Air Canada turned a $131-million profit last year, ending a string of losses.

Chief financial officer Michael Rousseau's compensation decreased 12 per cent to $1.48-million, while chief commercial officer Ben Smith's remuneration fell by the same amount to $1.2-million.

Duncan Dee, who resigned as chief operating officer in October, received $976,826 last year.

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Air Canada also said that Arthur Porter, currently being held in custody in Panama on fraud charges, received $67,088 as a director before resigning June 4, 2012. The compensation was split between cash and deferred share units. Mr. Porter attended just one-third of all board and committee meetings until he left the board.

Air Canada will hold its annual meeting June 27 in Vancouver.

The airline's largest shareholders are Letko, Brosseau & Associaties, which holds 19 per cent of all class B shares, and PAR Capital Management, holder of 26.4 per cent of all class A variable voting shares.

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