Canada Post management and executives were awarded $30.8 million in performance-based pay, a figure that has drawn criticism given the Crown corporation's recent record losses. The payments, described by Canada Post as "at-risk payments" rather than bonuses, were revealed in a report submitted to Parliament's Standing Committee on Government Operations and Estimates.
The timing of these payments has sparked public concern, particularly from advocacy groups like the Canadian Taxpayers Federation. Franco Terrazzano, the federation's federal director, expressed dismay that executives would receive such compensation while the organization is reportedly relying on government funding and experiencing substantial financial deficits. Canada Post has stated that these payments represent less than one per cent of its total annual labour expenses and are generated from its own revenues, not from repayable government bridge funding.
Canada Post has been facing significant financial headwinds, with cumulative operational losses exceeding $4.5 billion since 2018. The 2024 fiscal year alone saw an operating loss of nearly $1.3 billion. Factors contributing to these losses include a sharp decline in letter mail volumes, increased competition in the parcels sector, and the impact of a national strike in late 2024. The corporation has emphasized its focus on transformation, modernization, and repaying debts to ensure its long-term viability.
While the specific breakdown of how the $30.8 million was distributed among management and executives has not been fully disclosed, it is understood that with 2,377 management positions, including 417 executives, the average payment could be around $13,000. A separate bonus program for all Canada Post employees has not paid out since 2011. The corporation maintains that its compensation practices are under continuous review as it works towards financial recovery and improved service delivery.
