Caisse de Depot freezes leaders’ salaries in coronavirus response

Caisse de Depot et Placement du Quebec is freezing leaders' salaries for 2020 and has postponed variable compensation payments they were set to receive for 2019 because of the economic turmoil caused by the coronavirus pandemic.

The C$326.7 billion ($250.2 billion) Montreal-based fund will also create a C$4 billion pool to support Quebec companies temporarily affected by the coronavirus, the pension fund said Monday in a news release.

"The funds will be used to address the specific liquidity needs of companies, whether or not in CDPQ's portfolio, that meet certain criteria, including having been profitable before the COVID-19 crisis, having a promising growth outlook in their sector and seeking financing of over C$5 million. Eligible companies will be able to use these investments to weather this turbulent period until the economy recovers and support and advance their recovery plans once the crisis is over," the news release said.

CDPQ will also donate $300,000 to organizations that are helping the most vulnerable people during this pandemic, the pension fund announced. Regarding its 2020 salary freeze, the pension fund said that will apply to "all leaders in the organization and its subsidiaries," the release said.

Variable compensation payments for 2019 to CDPQ leaders will be postponed until the third quarter of 2020. Additionally, members of its executive committee will postpone and co-invest the maximum variable compensation possible for a period of three years, the news release said.

A spokesman at CDPQ could not be immediately reached for comment.