Sears Canada Executives Will Still Pocket Big Cash Bonuses

Sears Canada will pay a final $2.8 million in retention bonuses to 36 head office staff, even though the retailer’s restructuring efforts failed and the company is closing its doors.

Promised bonuses were only supposed to be paid in full if the company found a way to survive. However, Sears got court approval on Wednesday to continue paying retention bonuses to key staff such as executives and managers who will now steer the retailer through the wind-down and liquidation process.

In total, Sears will end up paying up to $6.5-million in bonus payments to head office staff from the time it filed for insolvency in June until it closes for good.

Lior Samfiru is a Toronto Employment Lawyer and partner at Samfiru Tumarkin LLP. He joined host Tasha Kheiriddin on Global News Radio 640 Toronto to share his frustration about the bonus pay despite the company’s failure and the fact that the 16,000 employees that have lost their jobs will not receive their proper severance pay.

Learn more about the Sears Canada bankruptcy and what the Sears Act entails.