Canada
March 16, 2026
Canadian government limits executive compensation packages at Algoma
Written by Kristen DiLandro
The Canadian government has placed limits on salaries, bonuses, and other forms of compensation for top executives at Algoma Steel, according to a local media report.
Formal documents filed in March with regulatory agencies show unspecified limitations on executive compensation. This much is clear: CAD $500 million in federal and provincial tariff liquidity support loans were made last year to Algoma, according to reporting by Sootoday.
Federal Finance Minister François-Philippe Champagne provided additional details in a sessional paper tabled recently in Canada’s House of Commons.
“While the details of the agreement are commercially confidential, the restrictions include … total compensation for those executives, inclusive of base salary, any cash bonuses, share- or option-based compensation, and other forms of compensation,” the sessional paper stated.
Reporting by Sootoday noted also that the new limitations were applicable to only Algoma Steel’s five highest-paid executives.
The restrictions are part of Algoma’s agreement with the Canadian government in which the Sault Ste. Marie, Ontario-based steel producer would receive CAD $400 million in federal financing as part of a CAD $500-million package supporting the company amid current tensions in the global steel trade. The remaining CAD $100 million was provided by the government of Ontario.
Top executives at Algoma receive compensation that includes base salary plus a mix of short-term and long-term incentives, including options, restricted stock units, and performance share equity units.
According to the same report, Algoma still had CAD $417 million left to withdraw as of December 31.
Background
Rajat Marwah, who had been Algoma Steel’s CFO, became CEO on Jan. 1. He replaced Michael Garcia, who retired at the end of last year.
Algoma lost money last year after President Trump increased Section 232 tariffs to 50%. The higher tariff rate led the company to scale back its presence in the US, previously a key market, and also caused a sharp drop in shipments.
