Clarification regarding a February 26, 2013, editorial in Tourmag
Following an editorial written by Dominique Gobert in Tourmag, Transat wishes to clarify the facts surrounding the compensation paid to its President.
The basic salary of Jean-Marc Eustache, founder, President and CEO of Transat, for 2011, 2012 and 2013 was in fact frozen at $822,000 for these three years, contrary to what Mr. Gobert’s article implies.
The figures disclosed publicly by Transat in its annual proxy are based on the Company’s fiscal year (November 1 to October 31), while salaries are adjusted in line with the calendar year (January 1 to December 31). This is the basis of the erroneous perception that may be drawn from the proxy.
As for the amount mentioned as total compensation, which includes, among others, the value attributed to stock options, it must be understood that this is potential compensation, which will only be realized if certain future conditions are met, including the attainment of profitability objectives. This kind of arrangement is obviously very common in publicly traded companies. Mr. Gobert also seems to attribute statements to Mr. Eustache that we are unable to verify.