Sears Canada Doubles Pay of Executives, But Lays Off 2,000 Workers
By Vittorio Hernandez | March 21, 2014 10:29 AM EST
In yet another example of the continuous widening gap between executive pay and rank-and-file compensation, Sears Canada almost doubled the salaries of their top executives in 2013 while laying off about 2,000 employees.
People walk past the main Sears store in downtown Vancouver, British Columbia in this file photo taken February 23, 2011. Struggling department store chain Sears Canada Inc reported a larger quarterly loss as it took one-time charges related to restructuring and asset impairment. REUTERS/Andy Clark/Files
The Toronto Sun reports that the top five officials of Sears earned a combined pay of $4.8 million in 2013 from $2.4 million in 2012. The data were based on a circular released ahead of the retail chain shareholders' meeting on April 24 in Toronto.
It identified new CEO Douglas Campbell as a beneficiary of a 47 per cent pay hike that came with his promotion from COO, boosting his base salary to $654,000 and a $238,000 yearly bonus.
The two VPs, Klaudio Leshjani and Salim Maherali, were given 85% and 86%, pay hikes, respectively, increasing their salaries to $775,000 and $581,000 in 2013
For the same period, Sears' sales went down 8.2 per cent to $4 billion, but profits went up more than four times o $447 million.
Sears Canada axed in mid-January 1,600 jobs across the country due to the lower sales, hitting mostly call centre workers. However, at the end of the month, it also cut another 624 jobs that are store-based.
Commenting on the numbers, Toronto Sun reader Jr pointed out that "Corporate greed is killing the world," while Taebok wrote that "Corporate execs make politicians look like chump change."
Responding to Taebok's comment, roman dog said that the executive are responsible to themselves and no one else. "They have no obligation to society," whereas public officials are supposed to place people first, "yet they pocket our cash with no recourse."
He further asked, "How can you condemn a private entity who has no obligation to put 'the people first' when those who are tasked with that very job don't uphold that standard?"
The discussion got deeper in the comments page as different opinions and theories about the economy, job markets and similar topics were provided by the commenters.
To contact the editor, e-mail:
Most Popular Slideshows
- Top 5 Richest Tennis Athletes
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Malaysia Airlines to Axe 4,000 Employees, Including CEO; Suspends Trading of Shares
- Floyd Mayweather Gets Investment Advice from Warren Buffett What to Do With Millions
- Former U.S. VP Al Gore Backs Ovo Energy by Investing £8 Million Before IPO
- Study Shows Gap Between What Advisors Say and What Resonates with Investors
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko
- Windows 9 To Include Interactive Live Tiles and Notification Center in Metro 2.0