Canada's top CEOs earn 200 times an average worker's salary: report

[Ryan Strome]

Average yearly compensation for top 100 CEOs is now $10.4 million

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Shortly before 11 a.m. today, the average top-earning CEO in Canada will have already earned — in less than one work day — what the average worker makes in an entire year, says a new study.

 

 

The Canadian Centre for Policy Alternatives report examined the 100 highest-paid CEOs at TSX-listed companies for 2016.

 

Turns out, those corporate executives had a stellar year. Their average annual compensation hit a record $10.4 million — that's more than 200 times an average worker's salary of $49,738, says the report.

 

It also found that top CEOs got a big pay hike. Their average compensation rose eight per cent compared to 2015, whereas an average worker's salary rose by just 0.5 per cent.

 

"CEOs continue, year after year, to increase that gap between them and the average worker," said David Macdonald, report author and senior economist with the CCPA, a think-tank that studies economic inequity issues.

"[They are] now making your average pay prior to your second cup of coffee," he said. "In a couple years — five years, maybe — CEOs will make your pay before breakfast."

 

 

Big bonuses

 

Macdonald combined base salary plus compensation, such as pensions and the granting of company shares, to tally up CEO income totals. 

He found that, on average, base pay made up only 11 per cent of a CEO's compensation. The lion's share came from share grants (33 per cent), bonuses (26 per cent) and stock options (15 per cent). 

 

For 2016, Valeant Pharmaceuticals CEO Joseph Papa scored the top spot, earning more than $83 million in total compensation. Almost $56 million of that came from share grants.

 

Magna CEO Donald Walker came in second, earning $28.6 million, most of which ($26.4 million) was the result of share grants and bonus pay.

 

Macdonald says one way to help shrink the inequality gap is for the federal government to tax top earners at a higher rate.

He also wants Ottawa to close tax loopholes such as the stock option deduction, a tax perk where profits from stock options are taxed at a lower rate compared to regular income. Many rich CEOs benefit from the perk. 

"I don't think that people object to CEOs making more than average workers, but they make over 200 times more and the gap is increasing," said Macdonald.

"That's what gets Canadians up in arms."

 

http://www.cbc.ca/beta/news/business/ceo-income-pay-canadian-worker-1.4462496

[Tortorella's Rant]

By day's end they will have likely earned more than everyone on this board. Unless you're a Canucks player in disguise, then give it a few weeks.

[JM_]

its decided by shareholders of companies who gets what. If some CEO helps generate huge bucks for their companies then they'll get paid. If not they'll get fired. Simple as that. Everything else in that story is media-driven bs imo. 

[SpennyCanuck]

LOL who cares!

 

Glad to see that Canadian companies are doing well. 

[Baer.]

Who exactly is up in arms?

[goalie13]

In related news: Canada's top CEOs are responsible for 1000+ times what the average worker is responsible for.

[Ryan Strome]

25 minutes ago, SpennyCanuck said:

LOL who cares!

 

Glad to see that Canadian companies are doing well. 

Really? Then why aren't their employees seeing any return on the success of these companies?

[Ryan Strome]

6 minutes ago, goalie13 said:

In related news: Canada's top CEOs are responsible for 1000+ times what the average worker is responsible for.

thats debatable.

[Ryan Strome]

31 minutes ago, Jimmy McGill said:

its decided by shareholders of companies who gets what. If some CEO helps generate huge bucks for their companies then they'll get paid. If not they'll get fired. Simple as that. Everything else in that story is media-driven bs imo. 

Or in some cases the average Canadian worker bails out these companies. So no, it's not as simple as that.

 

Btw are you claiming fake news? 

[Tre Mac]

20 minutes ago, Baer. said:

Who exactly is up in arms?

Me and the rest of the 'commoners'

[goalie13]

2 minutes ago, Ryan Strome said:

thats debatable.

Higher then?

 

My CEO is responsible for a company that earns more than $12B a year.  I build online learning for customer service agents, so I probably qualify in the 'average worker' category.  I would say that he is responsible for more than 1000 times what I am responsible for.

[bishopshodan]

$10.4 ?

 

pfft..., peanuts 

 

[Ryan Strome]

4 minutes ago, goalie13 said:

Higher then?

 

My CEO is responsible for a company that earns more than $12B a year.  I build online learning for customer service agents, so I probably qualify in the 'average worker' category.  I would say that he is responsible for more than 1000 times what I am responsible for.

Many average workers are responsible for success of companies, you likely fall in that category my friend. The increase in pay for ceos and "average workers" is totally lopsided. If these companies are doing so well why aren't the average workers seeing a meaningful increase in their pay?

[Toews]

39 minutes ago, Jimmy McGill said:

its decided by shareholders of companies who gets what. If some CEO helps generate huge bucks for their companies then they'll get paid. If not they'll get fired. Simple as that. Everything else in that story is media-driven bs imo. 

Agreed. Shareholders are not in the business of dolling out large sums of money to someone that is incompetent at their job. If you have a skillset that generates large sums of money for your employer then you have every right to ask for your piece of the pie. 

 

Should we be outraged at how much the shareholders earn? Of course not because they own the business and entitled to the profits. The same logic should apply to CEOs. 

[Tortorella's Rant]

4 minutes ago, Ryan Strome said:

Many average workers are responsible for success of companies, you likely fall in that category my friend. The increase in pay for ceos and "average workers" is totally lopsided. If these companies are doing so well why aren't the average workers seeing a meaningful increase in their pay?

Like us IT people

If your network goes in the crapper, even something minor enough, business loss will escalate quickly. We're everyone's best buds since nobody can do their job very long without us. 

[Ryan Strome]

2 minutes ago, Toews said:

Agreed. Shareholders are not in the business of dolling out large sums of money to someone that is incompetent at their job. If you have a skillset that generates large sums of money for your employer then you have every right to ask for your piece of the pie. 

 

Should we be outraged at how much the shareholders earn? Of course not because they own the business and entitled to the profits. The same logic should apply to CEOs. 

Do you not see the difference in pay increase for the average worker?

 

Wouldn't the average worker also have the right to ask for their piece of the pie? The average worker continues to be left behind, why would that be the case if these companies are apparently doing so well?

[Ryan Strome]

1 minute ago, Tortorella's Rant said:

Like us IT people

If your network goes in the crapper, even something minor enough, business loss will escalate quickly. We're everyone's best buds since nobody can do their job very long without us. 

Absolutely! I can tell you in my line of work you folks are very important.

[pluralsight]

2 minutes ago, Tortorella's Rant said:

Like us IT people

If your network goes in the crapper, even something minor enough, business loss will escalate quickly. We're everyone's best buds since nobody can do their job very long without us. 

I hear you my friend. I'm also in IT and I definitely think we deserve a lot more credit, especially in the compensation end of things but I'm biased of course. 

[PhillipBlunt]

2 minutes ago, Ryan Strome said:

Do you not see the difference in pay increase for the average worker?

 

Wouldn't the average worker also have the right to ask for their piece of the pie? The average worker continues to be left behind, why would that be the case if these companies are apparently doing so well?

Exactly. Remove the "average worker", and who does the work that the CEO delegates to? This disproportionate difference in pay is real. 

[PhillipBlunt]

1 minute ago, pluralsight said:

I hear you my friend. I'm also in IT and I definitely think we deserve a lot more credit, especially in the compensation end of things but I'm biased of course. 

IT personnel are always underappreciated. I appreciate the folks that help me do my job, and do my best to let them know whenever I can.