[Canada] CEO pay at all-time high

By 9.43 a.m. on January 3, Canada’s highest-paid CEOs had already made $58,800; equivalent to an average worker’s yearly salary, HR Reporter reports.

The statistic is part of a new report released by the Canadian Centre for Policy Alternatives (CCPA).

The country’s top 100 highest-paid CEOs now reportedly make 243 times more than the average employee. The previous high, in 2018, was 227 times more.

“We think of inflation as bad for everyone, but for CEOs it’s the gift that keeps on giving,” CCPA senior economist David Macdonald said.

“Historically high profits based on historically high inflation mean historically high bonuses for CEOs.”

In 2009, the best-paid CEOs made, on average, 155 times more than the average worker, according to the CCPA. In 1998, the ratio was 104 times.

“In the span of a quarter century in Canada, CEOs went from making roughly 100 times average workers’ pay to now close to 250 times average workers’ pay,”  

In 2022, top CEOs made 191 times more than the average worker.

Variable compensation grows

In addition, in 2008, CEOs’ salary made up 14 per cent of their pay; that’s now down to eight per cent as CEOs increase

their reliance on bonus-type compensation linked to profits and revenue.

In 2021, the highest-paid Canadian CEOs took home an average of $14.3 million, according to the CCPA, with bonuses making up 83 per cent of that compensation.

In 2008, variable compensation made up less than 70 per cent of the best-paid 100 CEOs’ total compensation.

“When times are bad, like during the pandemic, CEO bonus formulas are altered to protect them; in good times, like 2021, the champagne never runs dry,” Mr Macdonald said.

Previously, a UK study found that the myth of the “superstar CEO” continues to drive excessive pay with companies desperate to attract and retain top talent even if doing so doesn’t always lead to improved corporate performance and they have other options to explore.

In addition, the minimum pay to get on CCPA’s top 100 list hit a new all-time high of $6.7 million in 2021, up from $6.1 million in 2020. This minimum wage for the top CEOs is more than double its rate in 2008.

Source: HR Reporter

(Links and quotes via original reporting)

By 9.43 a.m. on January 3, Canada’s highest-paid CEOs had already made $58,800; equivalent to an average worker’s yearly salary, HR Reporter reports.

The statistic is part of a new report released by the Canadian Centre for Policy Alternatives (CCPA).

The country’s top 100 highest-paid CEOs now reportedly make 243 times more than the average employee. The previous high, in 2018, was 227 times more.

“We think of inflation as bad for everyone, but for CEOs it’s the gift that keeps on giving,” CCPA senior economist David Macdonald said.

“Historically high profits based on historically high inflation mean historically high bonuses for CEOs.”

In 2009, the best-paid CEOs made, on average, 155 times more than the average worker, according to the CCPA. In 1998, the ratio was 104 times.

“In the span of a quarter century in Canada, CEOs went from making roughly 100 times average workers’ pay to now close to 250 times average workers’ pay,”  

In 2022, top CEOs made 191 times more than the average worker.

Variable compensation grows

In addition, in 2008, CEOs’ salary made up 14 per cent of their pay; that’s now down to eight per cent as CEOs increase

their reliance on bonus-type compensation linked to profits and revenue.

In 2021, the highest-paid Canadian CEOs took home an average of $14.3 million, according to the CCPA, with bonuses making up 83 per cent of that compensation.

In 2008, variable compensation made up less than 70 per cent of the best-paid 100 CEOs’ total compensation.

“When times are bad, like during the pandemic, CEO bonus formulas are altered to protect them; in good times, like 2021, the champagne never runs dry,” Mr Macdonald said.

Previously, a UK study found that the myth of the “superstar CEO” continues to drive excessive pay with companies desperate to attract and retain top talent even if doing so doesn’t always lead to improved corporate performance and they have other options to explore.

In addition, the minimum pay to get on CCPA’s top 100 list hit a new all-time high of $6.7 million in 2021, up from $6.1 million in 2020. This minimum wage for the top CEOs is more than double its rate in 2008.

Source: HR Reporter

(Links and quotes via original reporting)