It goes without saying that Bombardier, the Royal Bank, the TD Bank, Potash Corporation are not emerging companies or start ups and their wealthy CEOs do not need subsidies from regular taxpayers.
Ottawa (03 April 2017) — Bombardier is a Canadian multinational with a lot of nerve says Canadians for Tax Fairness (C4TF).
Earlier this year the company asked for - and received - money from the federal government to help them sell their aircraft. Then late last month it was revealed that Bombardier's senior executives were going to get a 50 per cent increase in compensation for 2016 – a year in which Bombardier laid off thousands of workers and asked the government for handouts to help the company do its job.
Stock option loophole means Canadians pay twice, execs get more
CEO Alain Bellemare was to get US$9.5 million, up from US$6.4 million in 2015, and this includes US$5.2 million in share and option-based awards and a US$1 million salary. His annual bonus almost doubled to US$2.36 million. This is particularly galling since earlier this year the Canadian Centre for Policy Alternatives reported that Bellemare qualified for the controversial stock option tax holiday on at least C$3.2 Million. That loophole means that half of the proceeds from cashing in that stock is tax free.
'Scaled-back' bonuses still outrageous
The so-called scaled back bonuses mean senior executives will see only a 25 per cent increase in compensation for 2016 – still many, many times more what working people saw. It also doesn’t alter the fact that senior executives are receiving bonuses when thousands of workers are losing their jobs and Bombardier has received $1.4 billion from the federal and provincial governments.
Time to keep promise to close stock option loophole
Both Prime Minister Justin Trudeau and Finance Minister Bill Morneau campaigned on getting rid of the stock option loophole. But they failed to do so - in 2 consecutive budgets. Earlier this month they explained away their decision arguing that the loophole helped small start ups and emerging technology companies attract and retain talent.
It goes without saying that Bombardier, the Royal Bank, the TD Bank, Potash Corporation are not emerging companies or start ups and their wealthy CEOs do not need subsidies from regular taxpayers. These rules need to be changed.
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 370,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. ~ NUPGE