In a move that is sure to stir up controversy, the billionaire head of Canada’s largest grocery chain has received a C$1.2 million (US$890,000) pay raise. Grocery executives have come under fire for raising their prices amid record inflation, Entrepreneurng report.
Galen Weston, the chairman and president of the grocery chain Loblaw Companies, received a raise, bringing his total compensation for the previous year to C$11.79m. The Globe and Mail broke the story about the deal first.
Weston is the scion of one of Canada’s richest families and the CEO of George Weston Limited, a holding firm in which his family has an interest valued at more than C$14 billion. The largest shareholder in Loblaw is George Weston Ltd, which was established by his grandfather.
According to a letter addressed to shareholders, the boards of both firms ordered Meridian Compensation Partners to evaluate Weston’s remuneration. Meridian also mentioned 2020 as the compensation ceiling for him.
The report notes that Mr. Weston’s total direct remuneration “indicated that it was below the market median and Weston’s and Loblaw’s compensation policy targets.” A request for a response from Meridian was not immediately complied with. Weston’s income increased by approximately C$3 million in the last two years.
As more Canadians struggled to purchase groceries, grocery executives across the nation were accused of profiteering.
In the past, Weston has complained to customers that the price of food is “maddeningly” beyond his control. The business has recently achieved record profits, which it mostly credits to higher-margin products like household appliances and medications.
In testimony last month before a parliamentary committee, Weston claimed that the business’ revenues were “appropriate”.
Galen Weston was underpaid, according to a panel of Loblaws advisors, while Canadians struggle to pay for their weekly food. Canadians find this to be unacceptable, according to Jagmeet Singh, head of the New Democratic party, who spoke to the Guardian.
“How can a billionaire CEO be underpaid when he earns 343 times more than the typical employee of his company? We need to put an end to this insanity.”
Others proposed that Weston contribute the extra money to food banks, whose services are in record-high demand as the nation’s affordability crisis worsens.
“Tuesday saw a four-decade peak in demand, prompting Toronto’s largest food bank to declare a “breaking point.”
Conclusion
The food bank’s CEO, Neil Hetherington, told reporters that many of the organization’s clients are full-time workers and that many of the individuals it serves have never before visited a food bank but now depend on it to support their families. Formerly, if you attended school, obtained a degree, and found employment, you would be well. No longer is the case. In no uncertain terms, a crisis is underway.
Source: The GuardianÂ
