As Algoma Steel prepares to become a publicly traded company, salaries and bonuses earned by its top executives have become public information.
Michael McQuade, the steelmaker's eminently qualified chief executive officer, is expected to receive almost $4 million in compensation for the fiscal year ended March 31, 2021.
Recent regulatory filings show McQuade's earnings included $904,151 in salary, plus a $738,691 annual incentive and $2.3 million in share-based awards.
Rajat Marwah, the company's chief financial officer, had total compensation of $1.3 million including a $365,908 salary, $213,233 annual incentive and $693,185 in share-based awards.
John Naccarato, vice president for strategy and general counsel, collected $1.26 million including a $330,000 salary, $693,185 in share-based awards and a $192,308 annual incentive.
Mark Nogalo, vice president of maintenance and operating services, took in $1.17 million, with a $345,000 salary, $594,159 in share-based awards and $201,049 annual incentive.
Chief commercial officer Robert Dionisi earned $911,708, including $325,762 salary, $396,106 in share-based awards and $176,156 annual incentive.
In a report published earlier this year, David Macdonald, senior economist with the Canadian Centre for Policy Alternatives, explained that Canada's top chief executives are paid much differently than rank-and-file workers.
"Ordinary workers get wages or salaries," MacDonald said. "Some may get a bonus at the end of a year, but it will be small compared to their annual salary or wages."
"For the highest paid CEOs, annual compensation works in exactly the opposite way."
"Most executive compensation comes from 'variable pay' or various forms of bonuses. These bonuses can be paid in cash, a process some ordinary workers might be familiar with. But CEOs are also often paid in shares of their company (instead of in cash), or they are given the right to buy shares in the company in the future based on a price that is set in advance."
CEO Michael McQuade, age 64, had more than 35 years of experience at Stelco Inc., ultimately becoming president of Stelco/ U.S. Steel Canada.
He has a bachelor of mathematics degree from the University of Waterloo as well as CPA, CMA and Chartered Director designations.
Regulatory filings show the market or payout value of share-based awards earned by but not yet paid out to McQuade total more than $22 million.
Privately held Algoma Steel announced on May 24 that it was merging with Legato Merger Corp., a New York-basedspecial purpose acquisition company.