The term "bonus" creates a pretty common misunderstanding in these stories.

It's not some random pat-on-the-back-good-job-buddy-wink-wink frivolity. It's a pillar of many employment contracts, and the base salary is not what is usually expected to be the total earnings.

And they don't just apply to the senior executive team; they can apply to morning show hosts, sales managers, marketing, etc.

So if a subscriber goal for StackTV is baked into a marketing director's contract, and they meet that goal, you have to pay that bonus...legally. Same for a morning show host exceeding ratings goals in Vancouver, or a PD at Q107.

Yeah I know bonuses are a legal construct but the last line is particularly damning:

"Corus added that “management also furthered considerable efforts to right-size the Company for a more sustainable future, achieving stated targets related to headcount reductions by the end of the fiscal year.”

What's the takeaway other than the Execs were rewarded for cutting jobs?

Last edited by Binson Echorec (December 20, 2024 8:21 pm)

Don't worry, in the future those executives will be replaced by AI.
 

I posted this article as a conversation starter and didn't intend to get involved in the debate, but a few key points:

- In Canada, publicly traded companies, such as Corus, are required to disclose executive compensation levels under requirements set by the Canadian Securities Administrators. In other words, Corus had no choice but to disclose executive salaries, including bonuses or risk being found in violation of Canadian securities law. Similarly, the Government of Canada's compensation rules for disclosing the salaries/benefits for executives making over $125K per year are available at the GoC's Open Government portal - https://open.canada.ca/en

- Both Mr. Gossling and Mr. Reeb are seasoned executives who are undertaking the difficult job of keeping a company afloat with limited revenue streams in an uncertain environment. There is certainly no doubt that they are contractually obligated and are indeed entitled to receive any bonuses in their employment agreements. However, past experiences have shown that the court of public opinion is not often kind to corporations who pay out large bonuses to senior leaders while downsizing operations and laying off employees.

Make of that what you will.