By: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
If a big part of your pay came from bonuses, this case matters. A lot. Because employers love to downplay bonuses after termination. This case shows they don’t always get away with it.
What happened in Warren v. Canaccord Genuity Corp?
Craig Warren worked at Canaccord for 18 years. He was a Managing Director. Very senior. Very specialized. He built relationships. Brought in business. Ran major deals. At the time he was fired, he was 52 years old. His employer terminated him without cause. No advance notice.
Here’s the key part.
Most of his income came from bonuses. Not small bonuses either. Big swings. Some years in the millions. And like many industries, his pay depended on the market.
When the mining sector was hot, bonuses went up. When it wasn’t, they dropped.
The problem
After Warren was let go, the market exploded.
A strong bull run hit the mining sector.
The people who stayed? They made millions in bonuses.
So Warren said:
“If I had stayed, I would have earned that too.”
Makes sense, right?
What the employer argued
The employer tried a classic move.
They said: Let’s just average his past bonuses.
They looked at the last three years.
That gave them about $670,000.
Much lower. Much safer for them.
What Warren argued
Warren pushed back. Hard.
He said: You can’t average my bonuses. My pay depends on the market. And the market took off after I was fired.
Instead, he pointed to what other Managing Directors earned during that time.
That’s called the “comparator approach.”
In simple terms, it means looking what similar employees actually earned during the same period.
What the court decided
The court agreed with Warren.
And this is the important part for you.
The judge said:
When pay fluctuates a lot, averages can be misleading. Especially in industries tied to market cycles. The court accepted that Warren likely would have earned similar bonuses to his peers.
How much was he owed?
The court awarded him 21 months of reasonable notice, based on his age, seniority, and specialization.
Then they calculated his earnings during that time. Not using averages. Using real market conditions.
The result? About $4.64 million in compensation. After deductions, he received about $2.54 million.
Why this matters for you
If you were fired and:
- You earned bonuses, commissions, or variable pay
- Your industry goes through ups and downs
- The market improved after you were let go
This case is very relevant, because your employer might try to:
- Minimize your bonus
- Use low historical averages
- Ignore the company’s results post-termination
And that may not be fair.
The takeaway
Your compensation is not just your base salary. If bonuses were a real part of your income, they matter.
A lot.
And in the right case, you can argue that the comparator approach be taken as opposed to a historical average.
At Workplace Sage Legal, we provide sage legal advice to employees navigating workplace terminations and challenged in Canada. Book a consultation today.
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Learn more about employment law through the articles below:
- Understanding Bonuses in Ontario: Wages, Gifts, and Employee Rights
- Who is entitled to Reasonable Notice, and how is it calculated?
- Ontario Severance Packages: Why You Should Almost Never Accept the First Offer
DISCLAIMER: This article/blog is provided for educational/informational purposes only. This blog does not constitute legal advice. Do not rely on any advice before speaking with a lawyer. This blog does not form a solicitor-client relationship.
