MONTREAL — Air Canada chief executive Calin Rovinescu’s total compensation jumped nearly 77 per cent to $4.6 million last year as the carrier sharply improved its profits and shored up its finances.
The head of Canada’s largest airline earned $2.6 million in 2009 after becoming CEO on April 1, Air Canada said in its proxy circular to shareholders ahead of the carrier’s May 5 annual meeting.
The 2010 compensation totals for a full year compared with a nine-month period the previous year. If you annualize the 2009 salary, the Air Canada CEO earned 32 per cent more in 2010.
Included in last year’s total were “milestone payments” totalling $150,000 for each quarter in 2010, as prescribed in his contract.
If he remains on the job on March 31, 2012, Rovinescu will also be able to access a $5 million retention payment. That amount was included in his original 2009 contract.
In addition to $3 million in cash Rovinescu obtained last year, he also received $1.4 million of Air Canada shares and $156,400 of retirement benefits.
The total remuneration of the airline’s four top executives slightly increased in 2010, a year when the airline generated sharply higher profits and reversed a 2009 loss.
Air Canada is in the process of negotiating contracts with its unionized employees. Pilots are slated to vote April 15-27 on a tentative agreement.
Customer service agents are attempting to hammer out a deal with the help of a federally appointed conciliator.
The airline gave each of its full-time employees special $1,500 payments last year after achieving its strong financial results.