Exec pay not linked to layoffs: Sears Canada

Sears store in the Eaton Centre on Tuesday October 29, 2013. (Craig Robertson/QMI Agency file photo)

Sears store in the Eaton Centre on Tuesday October 29, 2013. (Craig Robertson/QMI Agency file photo)

QMI Agency

, Last Updated: 8:36 PM ET

Sears Canada says numbers that suggested massive executive pay raises in 2013 were used out of context, and that recent layoffs had nothing to do with any extra pay.

The numbers that showed executive earnings doubled last year actually compared pay for four executives in 2012 with six executives in 2013.

"So the numbers are not comparable," said Vincent Power, VP of corporate affairs and communications, in an e-mail Thursday.

The salary information that also suggested Sears Canada's new CEO, Douglas Campbell, got a major raise in his new post did not reflect actual salary information but rather earnings at both his old and new post over the course of the year, Power said.

In fact, Campbell's salary as CEO is 20% less than his predecessor made.

"I believe you will see that Sears salaries are below similar positions of many of our competitors," Power wrote.

He also denied executive salaries had anything to do with recent layoffs, as Power said a previous story suggests.

"The job reductions mentioned were business decisions taken by the company to increase efficiency and result in better customer service," he wrote. "Trying to link them to salaries of executives is unfair as the two subjects are not related."

Sears announced 1,600 layoffs in January, following a year of deteriorating revenue, store closures and more layoffs.


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