BCE Inc. awarded its top executives over $5 million in bonuses in 2024, despite a 30 percent stock price drop, declining sales and profits, and 4,800 layoffs. CEO Mirko Bibic received nearly $2.4 million, a 20 percent decrease from his 2023 bonus. Other executives also saw bonus reductions.
BCE's poor performance in 2024 was attributed to investor reaction to its $5 billion acquisition of Ziply Fiber and the subsequent pause in dividend growth. The company also carried over $40 billion in debt and paid out dividends exceeding its free cash flow.
BCE stated that Bibic's target compensation remained unchanged in 2024 and would be frozen in 2025. The company highlighted the performance-based nature of stock awards, explaining that the value decreased significantly due to stock price declines. Bonuses were partially tied to financial performance, strategic objectives, and individual performance. While missing profit targets, BCE paid out bonuses based on free cash flow and strategic initiatives.
BCE reduced its workforce by 4,800 positions in 2024, its largest restructuring in almost 30 years. This, along with a $2.1 billion writedown of media assets, contributed to the overall financial downturn.