Six senior executives fired from Alberta Health Services: Severance rights

Sudden Executive Restructuring at AHS

In a major shake-up, Alberta Health Services (AHS) has fired six senior executives from their roles at the province’s largest fully-integrated health system. The individuals affected are:

• Mauro Chies, president and CEO
• Dr. François Bélanger, vice-president of quality and chief medical officer
• Colleen Purdy, vice-president of corporate services an chief financial officer
• Tina Giesbrecht, general counsel and corporate secretary
• Geoffrey Pradella, chief strategy officer
• Dean Olmstead, chief program officer of capital management

The reorganization comes just eight days after the appointment of a new board of directors.

Last week, Premier Danielle Smith said that sweeping changes are being made to the province’s health-care system. AHS will ultimately be broken up into four new service delivery organizations, reporting directly to Health Minister Adriana LaGrange. The AHS board said in a statement that the transition will take at least 18 months.

Severance pay for AHS executives

AHS has not provided information about the employment status of the affected senior executives, or how much severance pay they will receive.

Mauro Chies severance package

The former president and CEO’s contract says that he will receive “a termination payment equal to slightly more than 24 months of his base salary”. Chies’ 2023 salary is $583,443. He served 35 years with AHS and its predecessors.

How is severance pay calculated for executives in Alberta?

Severance packages for executives and senior-level employees in Alberta can be complex, considering the number of factors involved in determining compensation.

Typically, a severance package for a high-level employee in Alberta is calculated by examining various components, such as salary, incentives, stock options, benefits, pension contributions, and terms of the employment contract. The total severance amount can reach up to 24 months’ pay.

LEARN MORE
• Severance pay in Alberta
• AHS severance packages
• Severance packages for executive and corporate directors

Another crucial aspect of a severance package is how long it will take an executive to land a new job. When a C-suite employee loses their job, they face not only the immediate loss of their position but also significant career repercussions in a highly scrutinized public sphere. This challenge, compounded by the limited availability of similar high-level roles, often prolongs their job search. Therefore, their severance package should be more generous to reflect these unique circumstances.

Tool for non-unionized workers

Like c-suite employees, all non-unionized employees in Alberta, whether they work hourly, part-time, or full-time, are owed severance pay when they lose their job. Use the Pocket Employment Lawyer to get a quick understanding of what you might be entitled to when you are let go by your employer.

Don’t accept an initial severance offer

If you’re presented with a severance offer, termination papers, or an exit agreement, it’s crucial not to sign immediately. Consult with an employment lawyer at Samfiru Tumarkin LLP first. Our legal experts will ensure you understand your rights and help negotiate the best possible package.

Don’t feel pressured by deadlines set by your employer for signing severance offers or exit agreements. You actually have up to two years from the moment of termination to file a claim for severance pay.

Signing these documents hastily can limit your ability to negotiate, likely costing you thousands of dollars in severance pay. In Alberta, receiving inadequate severance can amount to wrongful dismissal. Our team at Samfiru Tumarkin LLP is here to evaluate your situation and advocate for the compensation you’re rightfully owed.

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• I already accepted a severance package. What can I do?

You should not accept any initial severance offer, termination papers, or exit agreement that your employer asks you to sign by a deadline and return before having it reviewed by an employment lawyer at Samfiru Tumarkin LLP.

Talk to an employment lawyer

The knowledgeable employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee or senior executive who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.