Several companies offer some form of extra pension credits
A small group of CEOs is receiving extra credit for each year of service to the company, boosting their pensions by 50 per cent to 100 per cent, or more.
That’s according to a recent Globe and Mail analysis of public companies in the S&P/TSX composite index that finds some CEOs receive one-and-a-half or two years of credit for each year they’ve actually worked, while others get a lump-sum grant or five or 10 years of pension credit when they join the company or get promoted.
The Globe cites BCE’s CEO Michael Sabia, who has 26 years of credit service toward his pension. He joined Bell Canada International in 1999 and negotiated more than six years of pension credit, receiving another nine years when he became CEO of parent BCE in 2002. In the end, Sabia will be eligible to earn a pension of $836,500 a year when he retires at 60.
The analysis finds companies such as Canadian Imperial Bank of Commerce, Telus, Torstar and TransCanada offer some form of extra pension credit to CEOs.
That’s according to a recent Globe and Mail analysis of public companies in the S&P/TSX composite index that finds some CEOs receive one-and-a-half or two years of credit for each year they’ve actually worked, while others get a lump-sum grant or five or 10 years of pension credit when they join the company or get promoted.
The Globe cites BCE’s CEO Michael Sabia, who has 26 years of credit service toward his pension. He joined Bell Canada International in 1999 and negotiated more than six years of pension credit, receiving another nine years when he became CEO of parent BCE in 2002. In the end, Sabia will be eligible to earn a pension of $836,500 a year when he retires at 60.
The analysis finds companies such as Canadian Imperial Bank of Commerce, Telus, Torstar and TransCanada offer some form of extra pension credit to CEOs.
