Air Canada will finally swallow Air Transat for 190 million, four times less than what had been expected last year.
• Read also: A $ 530 million rebate for Air Canada
Shareholders are among the big losers, but Transat executives will receive millions in bonuses with this transaction.
The president and co-founder of Transat, Jean-Marc Eustache, will receive $ 5.5 million in severance pay.
Chief Financial Officer Denis Pétrin will receive $ 1.3 million, while it will be $ 1.1 million for Chief Operating Officer Annick Guérard.
These bonuses are provided for in the officers’ contracts and are not affected by the renegotiation of the agreement.
“There is enormous pressure from executives who want to check out, who are at the end of their rope, who no longer know what to do to increase profits. What we do is sell the business, ”explained Michel Nadeau, governance expert, to TVA Nouvelles.
He believes that in this case, selling was not necessarily the best solution, but that the financial incentives of the leaders were too good.
“They decide to liquidate the company and then they are going to spend happy years in West Palm Beach, Florida,” he quipped.