Jagmeet Singh calls on feds to implement an "excess profit tax" for grocery giant CEOs
Jagmeet Singh, the leader of Canada’s New Democratic Party (NDP), is asking the Liberal government to introduce a new tax targeting grocery giant CEOs in the upcoming budget.
Singh made the call on Wednesday in Hamilton, Ontario, and was accompanied by NDP MP Matthew Green and MPP Monique Green.
“Food bank usage went up 35% in Hamilton last year while CEO paycheques skyrocketed. Decades of Liberal and Conservative governments have built a system where grocery CEOs increase profits, and you pay for it,” said Singh.
He demanded the federal government implement an “excess profit tax” to deter price gouging and “force these wealthy CEOs to pay what they owe.”
“It’s not right that you pay your taxes then scrimp and save to afford your family’s groceries while wealthy insiders who get rich off the backs of Canadians are getting special treatment,” he shared.
This call comes just a day after Canadians were shocked to discover how much Loblaw Companies’ new CEO, Per Bank, made last year. Meanwhile, thousands are planning to boycott Loblaw-owned stores in May.
Galen Weston stepped down from his role as president of the corporation effective November 1, 2023, and Bank assumed the role of president and chief executive officer with a $1.315 million base salary package.
According to a report released on Monday by Loblaw, Bank has since received $438,333 in salary, $6.6 million in share-based awards, $803,535 in option-based awards, $910,660 in cash bonuses, and about $13.3 million in other forms of compensation. That adds up to $22,137,979 in compensation during Bank’s first few months on the job.
A Loblaw representative confirmed that part of the compensation that Bank received was the money he forfeited by leaving the company.
“This is a common practice for senior executives reflecting their unique circumstances when joining another organization,” they stated in an email to Daily Hive.
“In Mr. Bank’s situation, the payment of the RSU and cash awards relate to make-whole payments for compensation he forfeited, the risk he assumed in leaving an organization he led for many years, and the Board’s view of arrangements necessary to entice a global executive of Mr. Bank’s experience and stature to lead the organization and leave his previous employer.”
Singh has also been taking note of Bank’s compensation.
“As people line up at food banks, Loblaw pays its CEO $22.1 million,” Singh tweeted in French on Tuesday. “Don’t be fooled by their bogus reasons. The truth: It costs you so they can line their pockets. It’s indecent.”
Alors que les gens font la file dans les banques alimentaires.
Loblaw paye 22,1 millions $ à son PDG.
Ne vous laissez pas avoir par leurs raisons bidons.
La vérité: Ça vous coûte cher c’est pour qu’ils puissent se remplir les poches.
C’est indécent.https://t.co/NvyXaHZkAw
— Jagmeet Singh (@theJagmeetSingh) April 2, 2024
The NDP proposes that any funds collected under the excess profit tax be returned to Canadians with a GST rebate and a better school food program.
In a release, the party also called out the Conservative government.
The Price of Pierre: when he was in power he gave $60 billion in handouts to corporations.
Including $1.2 billion to Loblaws and $815 million to Metro.
Now his Chief Strategist doubles as a Loblaw Lobbyist.
With Conservatives you’ll pay more – so their friends can make more
— Jagmeet Singh (@theJagmeetSingh) April 3, 2024
“When Pierre Poilievre was in government, the Conservatives gave tax giveaways to large corporations, and the three big grocery chains didn’t have to pay $2.35 billion in taxes. In March, Poilievre’s Conservatives voted against an NDP motion to make ultra-rich CEOs pay what they owe to put money back in Canadians’ pockets,” the release reads.
“Poilievre’s staff and caucus are made up of grocery executives and lobbyists. Both the Conservatives and Liberals should have to explain to Canadians why they won’t make ultra-rich CEOs pay their fair share,” MP Green added.
He called Justin Trudeau and Poilievre “corporate sellouts” who want to protect corporate profits.
“We fight to make CEOs pay, not get richer on your backs,” he concluded.
With files from Irish Mae Silvestre
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