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Economics

BNN's Daily Chase: Old age security back in the spotlight

C.D. Howe urges Ottawa to raise of eligibility for seniors benefits to 67 The C.D. Howe Institute is calling on Ottawa to gradually boost the age threshold for old-age benefits to 67 from 65, warning of an imminent strain on social security programs amid aging boomers, low fertility rates and rising life expectancies. BNN’s Jameson Berkow has more.

We’re all about fairness on BNN today: Who gets special treatment and who gets tossed on the tarmac.

At 12:05 p.m. ET, we’ll hear from Robert Brown, one of the authors of a C.D. Howe Institute report arguing that as seniors come to account for a growing chunk of the population, they should eventually be forced to wait longer for old-age benefits. Not that there seems to be much urgency here: Their proposal would theoretically trigger the first increase in 2025, rising to 66 years-old from the existing 65.

The report notes that former Prime Minister Stephen Harper moved in the same direction before Justin Trudeau's Liberals reversed the decision.

DUAL CLASS IN SESSION

Meanwhile, the controlling family at Bombardier (BBDb.TO) has ruled out giving up its privileged position via a dual-class share structure, which has been criticized as the company garners massive government support.

Bombardier has a 'serious governance problem': Expert Anita Anand, the J.R. Kimber Chair in Investor Protection and Corporate Governance at the University of Toronto, joins BNN for perspective on Bombardier deferring executive pay raises amid public outcry.

"The key is keeping control of the company and passing it on to the next generation while making sure that shareholder value is generated along the way,"  the grandson of the company’s founder told Reuters.

BONUS BRIEFING

Postmedia (PNCa.TO) CEO Paul Godfrey told us yesterday that it's misleading to compare comparing his company's executive compensation to Bombardier's.

Three senior executives at Postmedia, part of a group awarded retention bonuses late last year, have quit the company. In November, Postmedia reported that almost $2.3-million in retention bonuses would be paid, including $900,000 to Godfrey.


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UNITED'S PR NIGHTMARE

And speaking of fair treatment, we’re tracking fallout for the airline industry after the decision to drag a passenger off an overbooked United Airlines flight continues to spark Internet outrage and head-shaking among PR experts.

It may also be hurting shareholders. MarketWatch says shares in parent (UAL.N) have dropped more than two per cent in premarket trading “as the airline continued to draw flak.”

Justin Creally, co-founder of North Strategic, told us yesterday that “you have to ask yourself, what decisions were made” to create the incident. For one thing, he wonders if the airline could simply have increased its offer of US$800 for a passenger who agreed to quit the plane.

United Airlines' unfolding PR nightmare Justin Creally, co-founder of North Strategic, discusses the unfolding PR situation at United Airlines and how this situation may open up a can of worms on the growing airline business of overbooking flights.

CORPORATE CANADA

Corporate leaders joining us today include British Columbia tycoon Jim Pattison at 10:20 a.m. ET. He reckons that Canada will emerge in good shape from any reworking of the North American Free Trade Agreement. And as marijuana investors get set for Thursday’s release of the proposed federal law to permit recreational cannabis, Pattison says he’s holding off in investing in the industry amid uncertainty over how it will evolve.

And at 11:35 a.m. ET, we’ll be joined  by Vermilion Energy (VET.TO) CEO Anthony Marino. The company proclaims a policy of offering “reliable and growing dividends.” But with the stock already sporting a rich yield of 5.1 per cent, we’ll ask if perhaps he can find a more productive use for cash than simply increasing the payments to shareholders.

Correction: A previous version of this article incorrectly identified one of the authors of the C.D. Howe report. BNN regrets the error.

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.