Canada Post Paid $30.8 Million in Bonuses Despite Record $1.57-Billion Loss

By Tahani Elghazaly
Published July 14, 2026

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Canada Post is facing renewed criticism after paying $30.8 million in performance-based compensation to executives and managers in 2025, the same year the Crown corporation recorded a historic pre-tax loss of $1.57 billion.

Documents submitted to the House of Commons Standing Committee on Government Operations and Estimates showed that the average payment for executives and managers was approximately $13,000, according to the Canadian Taxpayers Federation. The organization criticized the payments as Canada Post continued to rely on repayable government funding to maintain its operations.

Canada Post said it employs 2,377 management-level workers across the country, including 417 employees at the executive level. The corporation said compensation for this group accounts for less than one per cent of its total annual labour expenses.

The corporation defended the payments, describing them as part of an established at-risk performance compensation program rather than extraordinary bonuses approved after the losses were reported. Canada Post said the broader program covers roughly 7,000 employees, including postal clerks, front-line supervisors, accommodation specialists and management staff. About two-thirds of the participating employees receive the payments under longstanding collective agreements.

Canada Post acknowledged that the decision could raise concerns given its financial condition, but said the payments were funded through its own operating revenues and not through the repayable government bridge financing it has received. The corporation argued that retaining experienced employees is essential as it undertakes the largest transformation in its history.

Canada Post’s pre-tax loss increased by $728 million, or 86.7 per cent, from the $841-million loss recorded in 2024. Annual revenue declined by $315 million, or 4.7 per cent, as parcel volumes fell sharply amid prolonged labour uncertainty and increasing competition in the delivery market.

Parcel volumes dropped by 79 million pieces, or 32.6 per cent, during 2025 as customers moved their business to competitors offering greater stability. Canada Post received $1.034 billion in repayable federal funding in 2025 to prevent insolvency, followed by approval for up to $1.008 billion in additional repayable funding in early 2026.

The Canadian Taxpayers Federation maintains that performance payments are unjustified while the corporation is recording historic losses and relying on government financing. Canada Post argues that its compensation program is necessary to retain the employees responsible for modernizing the postal network and returning the organization to financial sustainability.