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Air Canada CEO Calin Rovinescu. (SHAUN BEST/REUTERS)
Air Canada CEO Calin Rovinescu. (SHAUN BEST/REUTERS)

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

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.

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.

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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