Kevin O’Leary says Postmedia’s executive are worth the retention bonuses they are being paid.

O’Leary, chairman at O’Leary Financial and BNN commentator, said in an interview it is important to keep Postmedia’s leadership stable as the company goes through a restructuring, even at a high cost.

Five of the company’s most senior executives are in the process of receiving a total of $2.3 million in retention bonuses, including chief executive officer, Paul Godfrey, who is being compensated $900,000.

“Godfrey’s a legend in this country’s media,” said O’Leary. “He’s probably one of the best executives that has delivered growth during a period of trauma, trials and tribulations.”

The bonuses are being paid out as Postmedia cuts 20 per cent of its work force.

In its most recent earnings report, Postmedia reported a net loss of $99.4 million in its fiscal fourth quarter, as print advertising sales fell more than 20 per cent.

That’s one of the reasons O’Leary says the company needs to keep top executives in place.

“If I had money invested, I would not want Godfrey going anywhere,” O’Leary said. “I think he’s got his fingers in the soul and essence of this company.”

But one of the executives may not be remaining. According to reports, general and legal counsel Jeffrey Haar will be departing at the end of November. It is unclear if he’ll receive his entire bonus, which is being paid out in installments.  

MEDIA UNION WANTS BONUSES RETURNED

The bonuses are not sitting well with Canada’s media union.

CWA Canada is demanding the Postmedia executives return their bonuses, with the union's president Martin O’Hanlon describing the payouts as “an absolute disgrace.” O’Hanlon says it is unconscionable that any boss would accept a bonus while firing staff as the holiday season approaches.