Canada Post paid bonuses to executives and managers in 2025 despite posting a record $1.57 billion loss, CEO Doug Ettinger told a House of Commons government operations committee. The revelation came during testimony on June 22, 2026, as the crown corporation faces mounting financial pressure and rising stamp prices.
Bonuses Paid While Losses Mount
Conservative MP Andrew Lawton (Elgin-St. Thomas, Ont.) questioned Ettinger about executive compensation during the committee hearing. Ettinger confirmed that Canada Post has two bonus programs: a corporate team incentive (CTI) that has not paid out since 2011, and an at-risk program that did pay bonuses in 2025.
“We have a corporate team incentive, that's the bonus program,” Ettinger testified. “It's called CTI. It hasn't paid a dime since 2011, so, 15 years.”
When pressed by Lawton about the at-risk program, Ettinger said, “One of the things I lose sleep about is keeping the good people who are with us. In the broader compensation program, to keep that talent, we paid a bonus last year – sorry, at-risk pay.”
Lawton demanded to know the total amount paid, but Ettinger initially replied, “I don't have the number at hand.” He later committed to providing the figure to the committee. Ettinger noted that the at-risk program covers 7,000 employees, nearly two-thirds of whom are union members, and that the program is part of their collective agreements.
Lawton clarified his focus: “We're not after what you're doing to unionized workers. We want to know how much you and your colleagues are getting while posting a billion-dollar deficit.”
Cost-Cutting Measures Already Underway
Ettinger outlined steps Canada Post has taken to reduce expenses. “We have cut a lot of costs on the management side,” he said. “We've taken more than 10% out of our management and executives. We got out of the guaranteed pension many, many years ago. We took $200 million over the last two years out of our discretionary spending, travel, those kinds of things.”
Despite these cuts, Canada Post's financial situation continues to deteriorate. The corporation reported a record $1.57 billion loss in 2025, according to Blacklock's Reporter, which first reported the testimony.
Stamp Prices Soar 35% in 18 Months
Canada Post is also signaling further stamp rate increases in 2026. The price of mailing a domestic letter has risen 35% over the past 18 months, from 92 cents to $1.24. Management acknowledged that while rate hikes help, they are insufficient.
“While the rate increase is helpful, rates are underpriced,” management wrote in a Third Quarter Financial Report. “Canada Post is on track to post its eighth consecutive year of losses. The 2025 losses are expected to be the most significant of any annual losses in Canada Post's history.”
The post office warned it would become insolvent without a $1.034 billion line of credit approved by the federal cabinet on January 24, 2026. Management attributed the losses to a long-term decline in letter mail revenue and increasing competition from private sector parcel couriers.
