Canada Post Faces Record $1.57 Billion Loss Amid Executive Bonus Controversy
Canada Post CEO Doug Ettinger appeared before the Commons government operations committee this week, revealing that the Crown corporation posted a record loss of $1.57 billion in 2025 while still paying out bonuses to executives, according to Blacklock’s Reporter.
The announcement has sparked sharp criticism from opposition MPs, who questioned how the financially struggling postal service could justify executive compensation packages while running a billion-dollar deficit.
Cost-Cutting Measures Fall Short
Ettinger defended the company’s financial management, pointing to significant cost-cutting efforts already underway. “We have cut a lot of costs on the management side,” he told the committee last Thursday.
He outlined several austerity measures, including reducing management and executive compensation by more than 10%, exiting the guaranteed pension plan years ago, and cutting $200 million in discretionary spending over the past two years.
Despite these efforts, Canada Post is on track to record its eighth consecutive year of losses, with 2025 expected to be the worst in the organization’s history.
Bonus Programs Under Scrutiny
Conservative MP Andrew Lawton (Elgin-St. Thomas, Ont.) pressed Ettinger on the issue of executive bonuses during the committee hearing.
“Are you still paying executive bonuses?” Lawton asked directly.
Ettinger explained that Canada Post operates two reward programs. The first, called CTI (company incentive for the team), “hasn’t paid a cent since 2011, 15 years,” he said.
However, when questioned about the second program — described as a risk program — Ettinger acknowledged that bonuses were paid last year as part of efforts to retain key talent.
“One of the things that robs me of sleep is retaining the good people who are with us,” Ettinger said. “To retain that talent, as part of the broader compensation program last year we paid a bonus — sorry, compromised pay.”
MP Demands Transparency on Executive Pay
When pressed for specific figures, Ettinger admitted he didn’t have the numbers readily available but committed to providing them to the committee.
The bonus program covers approximately 7,000 employees, with nearly two-thirds being union members whose compensation is governed by collective agreements.
Lawton made clear the committee’s focus was on executive compensation. “We don’t care about what you’re doing to unionized workers,” he said. “We want to know how much you and your colleagues are getting paid while running a billion-dollar deficit.”
Ettinger responded: “I understand you. We will provide you with the total numbers.”
Stamp Prices Continue to Rise
Meanwhile, Canada Post is preparing to raise stamp prices again in 2026. The price of a domestic letter has already increased 35% in the past 18 months, climbing from 92 cents to $1.24.
Management acknowledged in a third-quarter financial report that “while the rate increase is helpful, the rates are undervalued.”
The company attributed its mounting losses to a long-term decline in mail revenue and increasing competition from private parcel couriers.
Post Office Nears Insolvency
The financial situation is so dire that without a $1.034 billion line of credit approved by Cabinet on January 24, Canada Post would be insolvent, according to the report.
The combination of rising costs, declining traditional mail volume, and competitive pressures in the parcel delivery market continues to challenge the Crown corporation’s long-term viability.
