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

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

Posted at 7:00 am

Julien Arsenault

Julien Arsenault
The Press

Telesat’s venture into the markets could also prove extremely profitable for its president and chief executive officer, Daniel Goldberg. In leadership since 2008, he is entitled to the equivalent of 53 million in stock awards in 2021. Considering his base salary of approximately 1.4 million, annual bonus of 2, 7 million and other benefits, the total salary of the manager is 64 million.

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

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

The Ottawa company’s promises – which should in principle generate significant benefits to Quebec – are still pending. It is seeking 2.5 billion to complete the financing of its Lightspeed constellation – a 6.5 billion project that is behind schedule. Telesat wants to deploy satellites in low orbit more than 1,000 km above the Earth so that, among other things, it can provide fast Internet access to remote areas. Due to exploding costs, the constellation of 298 satellites will eventually be reduced to 188 units.

Following, the company says

Telesat sees no problem with the amounts awarded to its big boss. Her spokeswoman, Lynette Simmons, said Mr Goldberg’s emoluments were “in line with market practice”. At the company’s current stock price on the Toronto Stock Exchange ($ 17), the value of Mr. awards. Goldberg has shrunk to $ 12 million, he added. When it hit the Bay Street trading floor in November, the stock was worth approximately $ 49.80.


PHOTO PROVIDED BY TELESAT

Daniel Goldberg is President and CEO of Telesat.

“No government funds will be used to pay the executives and Telesat must repay all the loans with interest, which generates revenues for the governments,” Ms.ako Simons.

The Legault government pledged 400 million while the Trudeau government pledged approximately 1.5 billion. In both cases, financial support is provided through loans and preferred stock investments. Together, the two levels of government propose to fund 28% of the constellation. However, the money has not yet been donated. Payments are conditional upon the conclusion of the financing package.

“It’s good practice when governments provide assistance to have executive pay limits,” said Richard Leblanc, a management specialist at York University in Toronto. I can’t say if there’s a ceiling, but the value of 64 million seems high at first glance. »

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

“Any investment in this project […] plus a requirement that all executive compensation be in accordance 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 questions to the Telesat board of directors, saying it was up to directors to “mark” senior management salaries.

The Ontario company expects 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 promises to create 300 jobs in Gatineau. Its subcontractor MDA, which is retained to assemble the satellite antennas, will take 280 people to Sainte-Anne-de-Bellevue.

Learn more

  • 1.8 billion
    This is the sum of the investments planned in Quebec as part of the Lightspeed project.

    SOURCE: Government of Quebec

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