Bonus of 6 million to the boss of Telesat, supported by Quebec and Ottawa

Despite the 2 billion in public funds promised by Quebec and Ottawa, Telesat is still looking for money to finalize the financial package for its constellation of telecommunications satellites. That didn’t stop her from paying her boss a $6 million bonus last year just for taking the company public.

Julien Arsenault
The Press

Telesat’s adventure in the markets could also prove to be extremely profitable for its president and chief executive officer, Daniel Goldberg. In charge since 2008, he was entitled to the equivalent of 53 million in stock awards in 2021. Taking into account his base salary of around 1.4 million, an annual bonus of 2, 7 million and other benefits, the manager’s total pay was 64 million.

This information can be found in the document sent to the shareholders of the company in view of the annual meeting of 1^er June. Provided for in Mr. Goldberg’s contract, the special bonus of 6 million may raise questions given the involvement of two levels of government in his projects.

“It is difficult to answer no to this question,” said François Dauphin, director general of the Institute for the governance of private and public organizations (IGOPP), when asked if the payment offered to Mr. Goldberg was too generous. “It’s high at first glance. The success of Telesat’s projects, however, depends on the ability to raise money in the markets. »

The promises of the Ottawa company – which should in principle generate significant benefits in Quebec – are still pending. It is seeking 2.5 billion to complete the financing of its Lightspeed constellation – a 6.5 billion project which is falling behind schedule. Telesat wants to deploy satellites in low orbit more than 1000 km above the Earth to, among other things, provide high-speed Internet access in remote areas. Due to exploding costs, the constellation of 298 satellites will eventually be reduced to 188 units.

Compliant, says company

Telesat sees no problem with the sums granted to its big boss. His spokeswoman, Lynette Simmons, says Mr Goldberg’s emoluments are “in line with market practice”. At the company’s current stock price on the Toronto Stock Exchange ($17), the value of Mr. Goldberg’s awards has shrunk to $12 million, she adds. When it hit the Bay Street trading floor last November, the stock was worth around $49.80.

“No government funding will be used to pay executives and Telesat must repay all loans with interest, which generates returns for governments,” says Ms.^me Simons.

The Legault government had promised 400 million while the commitment of the Trudeau government is around 1.5 billion. In both cases, financial support is provided through loans and preferred stock investments. Together, the two levels of government are proposing to fund 28% of the constellation. However, the money has not yet been disbursed. Payments are conditional upon the finalization of the financing package.

“It’s good practice when governments provide aid to have caps on executive pay,” says Richard Leblanc, a governance specialist at York University in Toronto. I can’t say if there was a ceiling, but the amount of 64 million seems high at first glance. »

Asked by The PressOttawa and Quebec were cautious in their comments, stressing that they had not yet paid the money promised to Telesat.

“Any investment in this project […] includes a requirement that all executive compensation be consistent with reasonable industry market conditions,” the federal Department of Innovation, Science and Economic Development said in an email.

In Quebec, the Ministry of Economy and Innovation referred the questions to the Telesat board of directors, saying that it was up to the directors to “mark out” the salaries of senior management.

The Ontario company hopes to find the missing 2.5 billion from Export and Development Canada and Bpifrance. It is unclear whether the two agencies will agree to participate in the project. If the company finds the necessary funds, it undertakes to create 300 jobs in Gatineau. Its subcontractor MDA, retained to assemble the satellite antennas, will hire 280 people in Sainte-Anne-de-Bellevue.