TORONTO, June 17, 2026 (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) released the followin...


TORONTO, June  17, 2026  (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) released the following statement today regarding the disclosure of 2025 executive compensation packages at Algoma Steel in Sault Ste. Marie:  In December 2025, mere days before Christmas, Algoma Steel – under the leadership of Chief Executive Officer Michael Garcia – announced that more than 1,000 workers at its Sault Ste. Marie operations would be laid off.  Workers, their families and the entire community were devastated by the news, as well as the announcement’s brutally callous timing. With Algoma – the city’s largest employer – on the verge of recording an annual loss of nearly $1 billion, many in Sault Ste. Marie were left reeling and worried for their and the community’s future.  Not everyone, however.  In particular, Algoma’s CEO, who had previously decided he would retire at the end of 2025, was set to receive a multimillion-dollar compensation package approved by Algoma’s board of directors.  The details of Garcia’s compensation have now been released and, as many suspected, they are egregious, considering the circumstances.  Despite Algoma’s 1,000 job cuts and its $985-million loss under Garcia’s watch, the departing CEO actually was awarded a substantial increase in compensation in 2025.  Garcia walked away with $6.82 million in total compensation last year, which represents an increase of 22.2% from the previous year ($5.58 million) and a whopping 130% more than he received two years earlier ($2.96 million).  Garcia’s 2025 package included a base salary of $1.07 million and $5.75 million in other forms of compensation.  To put this compensation package into the context of the economic realities faced by regular working people:  Garcia’s base salary alone provided him with a bi-weekly paycheque of over $41,000 – more than millions of Canadians earn in an entire year.Garcia’s 2025 compensation package amounts to more than double the lifetime earnings of the average Canadian retiring today.  However, according to Algoma Steel’s board, Garcia actually could have been “entitled” to receive more than the $6.82 million he walked away with.  “The economic terms agreed with Mr. Garcia were materially lower than those to which he would have otherwise been entitled under the termination without cause provisions of his employment agreement with the Company,” Algoma Steel states in its executive compensation disclosures.  To the contrary, the United Steelworkers union, which represents the vast majority of Algoma Steel employees, believes it is unacceptable for top corporate executives to be awarded huge compensation increases during a period of mass layoffs and poor financial results.  It is outrageous to attempt to justify a CEO’s 130% compensation increase over two years, while hundreds of workers have lost their livelihoods and a community’s economic future is at stake.  USW members and all working families in Sault Ste. Marie deserve more respect and a greater commitment to corporate accountability and responsibility from Algoma Steel, a company that accepted nearly $1 billion in public funding before cutting so many jobs and simultaneously rewarding its CEO so handsomely.  Marty WarrenNational Director for CanadaUnited Steelworkers  Contact: Denis St. Pierre, USW Communications, 647-522-1630, dstpierre@usw.ca  
            

ASTL

Algoma Steel CEO walks away with $6.8 million in wake of 1,000 layoffs and billion-dollar loss

Algoma Steel Faces Governance Scrutiny Over CEO Pay Amid Losses

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>TORONTO, June 17, 2026 (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) released the followin...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>USW blasted Algoma Steel&#039;s 2025 executive compensation disclosed during mass layoffs and a near $1 billion loss, arguing top pay while workers suffer signals weak governance. The controversy could pressure the board to reconsider compensation linked to performance and public funding. Short-term trading could hinge on board responses and any governance updates.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>USW criticizes Algoma CEO Garcia&#039;s $6.82m pay amid 1,000 layoffs.</li><li>Algoma reports 2025 near $1B loss.</li><li>Board says Garcia could have earned more under termination terms.</li><li>USW advocates accountability amid public funding and job cuts.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Algoma Steel Inc. (ASTL)</strong>: Executive compensation disclosure; governance concern amid substantial losses and layoffs.</li><li><strong>United Steelworkers (USW)</strong>: Union statement could amplify governance scrutiny and community/regulatory pressure.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>The article falls under Corporate Developments, highlighting governance and compensation disclosures that can impact ASTL&#039;s market perception and risk profile.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>USW critique could spark investor focus on governance and pay practices.</li><li>1,000 layoffs and near $1B loss amplify sentiment headwinds.</li><li>Board response on compensation policy may trigger volatility.</li><li>Public funding ties raise regulatory risk considerations.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>1,000 workers laid off at Sault Ste. Marie in Dec 2025.</li><li>2025 total compensation for CEO Garcia: $6.82 million.</li><li>Base salary: $1.07 million; other compensation: $5.75 million.</li><li>2025 loss: $985 million; near $1B.</li><li>Garcia to retire at end of 2025.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Governance concerns may weigh on ASTL in the near term; monitor board actions over weeks.</p>
  </section>
</section>


<article>
  <header>
    <h2>Algoma Steel CEO walks away with $6.82 million in wake of 1,000 layoffs and billion-dollar loss</h2>
  </header>

  <section>
    <p>In December 2025, mere days before Christmas, Algoma Steel – under the leadership of Chief Executive Officer Michael Garcia – announced that more than <strong>1,000</strong> workers at its Sault Ste. Marie operations would be laid off. With Algoma – the city’s largest employer – on the verge of recording an annual loss of nearly <strong>$1 billion</strong>, many in Sault Ste. Marie were left reeling and worried for their and the community’s future. The United Steelworkers union (USW) released a statement today regarding the disclosure of 2025 executive compensation packages at Algoma Steel in Sault Ste. Marie. </p>
  </section>

  <section>
    <h3>Executive compensation details for the departing CEO</h3>
    <p>Despite Algoma’s <strong>$985-million</strong> loss under Garcia’s watch, the departing CEO actually was awarded a substantial increase in compensation in 2025. Garcia walked away with <strong>$6.82 million</strong> in total compensation last year, which represents an increase of <strong>22.2%</strong> from the previous year (<strong>$5.58 million</strong>) and a <strong>130%</strong> more than he received two years earlier (<strong>$2.96 million</strong>). Garcia’s 2025 package included a base salary of <strong>$1.07 million</strong> and <strong>$5.75 million</strong> in other forms of compensation. <em>To put this compensation package into the context of the economic realities faced by regular working people: Garcia’s base salary alone provided him with a bi-weekly paycheque of over <strong>$41,000</strong> – more than millions of Canadians earn in an entire year.</em></p>
  </section>

  <section>
    <h3>Board explanation and entitlement provisions</h3>
    <p><q>The economic terms agreed with Mr. Garcia were materially lower than those to which he would have otherwise been entitled under the termination without cause provisions of his employment agreement with the Company,”> Algoma Steel states in its executive compensation disclosures.</q> This statement is cited as part of the company’s disclosures about Garcia’s 2025 package.</p>
  </section>

  <section>
    <h3>Union perspective and community impact</h3>
    <p>The United Steelworkers union, which represents the vast majority of Algoma Steel employees, believes it is unacceptable for top corporate executives to be awarded huge compensation increases during a period of mass layoffs and poor financial results. <em>It is outrageous to attempt to justify a CEO’s 130% compensation increase over two years, while hundreds of workers have lost their livelihoods and a community’s economic future is at stake.</em> USW members and all working families in Sault Ste. Marie deserve more respect and a greater commitment to corporate accountability and responsibility from Algoma Steel, a company that accepted nearly $1 billion in public funding before cutting so many jobs and simultaneously rewarding its CEO so handsomely.</p>

    <p><strong>Marty Warren</strong>National Director for CanadaUnited Steelworkers</p>
    <p>Contact: <strong>Denis St. Pierre</strong>, USW Communications, <strong>647-522-1630</strong>, dstpierre@usw.ca</p>
  </section>

  <section>
    <h3>Key facts at a glance</h3>
    <ul>
      <li>Stock symbol: <strong>ASTL</strong></li>
      <li>Layoffs: <strong>more than 1,000</strong> workers at Sault Ste. Marie</li>
      <li>Financial results: <strong>nearly $1 billion</strong> annual loss; <strong>$985-million</strong> loss cited</li>
      <li>CEO compensation: <strong>$6.82 million</strong> total for 2025</li>
      <li>Year-over-year change: <strong>22.2%</strong> increase from 2024 (<strong>$5.58 million</strong>); <strong>130%</strong> more than two years earlier (<strong>$2.96 million</strong>)</li>
      <li>Base salary: <strong>$1.07 million</strong>; Other compensation: <strong>$5.75 million</strong></li>
      <li>Bi-weekly paycheque: over <strong>$41,000</strong></li>
      <li>Public funding context: Algoma Steel reportedly accepted nearly <strong>$1 billion</strong> in public funding</li>
    </ul>
  </section>
</article>

USW blasted Algoma Steel's 2025 executive compensation disclosed during mass layoffs and a near $1 billion loss, arguing top pay while workers suffer signals weak governance. The controversy could pressure the board to reconsider compensation linked to performance and public funding. Short-term trading could hinge on board responses and any governance updates.

Algoma Steel CEO walks away with $6.8 million in wake of 1,000 layoffs and billion-dollar loss

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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