The billionaire head of Canada’s largest grocery chain has been given a C$1.2m (US$890,000) raise, in a move likely to prompt controversy as grocery executives have faced sharp criticism for raising their prices amid record inflation.
The raise for Galen Weston, chairman and president of grocer Loblaw Companies, brought his total pay last year to C$11.79m. Details of the deal were first reported by the Globe and Mail.
Weston, scion of one of Canada’s wealthiest families, also serves as head of George Weston Limited, a holding company controlled by his family, with their stake worth more than C$14bn. George Weston Ltd, founded by his grandfather, is Loblaw’s largest shareholder.
The boards of both companies asked Meridian Compensation Partners to assess Weston’s pay, according to a document sent to shareholders. Meridian also suggested his pay benchmark in 2020.
“The results of Meridian’s 2022 review suggested that Mr Weston’s total direct compensation was below the market median and Weston’s and Loblaw’s compensation policy objectives,” the document says. Meridian did not immediately respond to a request for comment.
Over the last two years, Weston’s pay has jumped nearly C$3m.
Grocery executives across the country have been accused of profiteering as more Canadians struggled to afford groceries.
Weston previously told customers that food costs were “maddeningly” out of his control. The company has pulled in record profits in recent quarters, but attributes this largely to higher-margin items like domestic appliances and medicine.
Testifying in front of a parliamentary committee last month, Weston said the company’s profits were “reasonable”.
“While Canadians struggle to afford their weekly groceries, a team of Loblaws consultants determined Galen Weston was underpaid … This doesn’t sit right with Canadians,” Jagmeet Singh, leader of the New Democratic party told the Guardian. “How can a billionaire CEO making 343 times more than the average worker of his company be underpaid? This is nonsense and we need to make it stop.”
Others suggested that Weston donate the additional income to food banks, which have seen a record surge in demand as the country’s affordability crisis deepens.
On Tuesday, Toronto’s largest food bank said it was at a “breaking point” as demand hit a four decade high.
“[These are people who] have never been to a food bank before and now they are relying on food charity to be able to feed their families,” CEO Neil Hetherington told reporters, adding many of the food bank’s clients work full time. “It used to be that if you went to school, got an education got a job, you would be just fine. That isn’t the case any more … Let me be very clear, we are in a crisis.”
