Executive compensation packages that drew sharp criticism from the Canadian director of the United Steelworkers nonetheless won support at Algoma Steel’s annual general meeting yesterday.
In a news release, the Sault steelmaker reported that support was given to a non-binding resolution on executive compensation.
Marty Warren, national director of the United Steelworkers, castigated the company last week for granting “outrageous” compensation packages to senior executives as they prepared to lay off more than 1,000 workers.
The company lost almost $1 billion last year.
Michael Garcia, who retired Dec. 31 as Algoma’s chief executive officer, was paid a base salary of $1.07 million, but collected a total of $6.82 million compensation for his efforts to turn the company around.
That compared to $5.58 million total compensation in 2024 and $2.96 million in 2023.
Rajat Marwah, who took over from Garcia on Jan. 1 as CEO, was president and chief financial officer last year.
Marwah earned a total of $1.47 million in 2025, considerably more than his 2025 salary of $543,762.
Other top-earning Algoma brass in 2025:
John Naccarato, vice president of strategy and chief legal officer, $1.39 million including base salary of $504,900
Mark Nogalo, then vice president for strategic transformation, $827,088 including $425,000 base salary
Michael Panzeri, senior vice president of production, $1.69 million including base salary of $596,700
Not all of this compensation was paid in cash or paid immediately.
The big payouts to Algoma Steel’s top brass include a mixture of short-term incentives and long-term incentives including options, restricted stock units and performance share equity units.
The long-term incentives tend to be non-cash, share-based, vesting in three years to encourage employees to stay with the company and take a longer-term mindset.