Top Canadian CEOs earn average annual worker salary by 1:11pm January 2

Canadian Press, The Canadian Press
1 Comment| January 2, 2014


TORONTO - By the time average Canadians finished lunch on Thursday, Canada's top paid CEOs had already earned the equivalent of their annual salary.
 
It may be hard to swallow, but according to an annual review by the Canadian Centre for Policy Alternatives, by 1:11 p.m. on Jan. 2, the average top paid Canadian CEO will have earned as much as the average full-time worker's yearly income.
 
The review found the average compensation among Canada's top 100 CEOs was $7.96 million in 2012. This compared with the average annual Canadian worker's salary of $46,634.
 
The centre says CEO pay for Canadian public companies listed on the Toronto Stock Exchange has ballooned by 73 per cent between 1998 and 2012, the latest figures available.
 
In contrast, the average Canadian full-time worker's annual salary has only grown by six per cent during this period.
 
This amounts to the country's top 100 highest-paid CEOs making 171 times the earnings of an average Canadian wage - a jump from 105 times in 1998.
 
Meanwhile, minimum wage workers employed for 40 hours a week earned an average of $20,989 a year in 2012.
 
“Compensation packages paid to chief executive officers have come under intense scrutiny and pressure from shareholders, the media, and the general public. There is no clear relationship between CEO compensation and any measure of corporate performance,” said the report's author Hugh Mackenzie in a statement.
 
“But despite the scrutiny, the pay of CEOs in Canada and elsewhere has proven to be remarkably resilient.”
 
The review found the top-earning executive in Canada was the head of the Canadian Pacific Railway (TSX:T.CP, Stock Forum), Hunter Harrison, who was paid $49.1 million in salary, stock options and bonuses in 2012.
 
Just to cover Harrison’s compensation package, each CP rail car (there’s over 11,000 of them) has to earn $90 every week.
 
Harrison, who retired as chief executive at Canadian National Railway Co. (TSX:T.CNR, Stock Forum) in 2009, saw his pay packet boosted some $44.5 million to make up for pension and other payments that CN refused to make when he took the top job at the rival railway.
 
The second-highest paid CEO was James Smith of Thomson Reuters Corp. (TSX:T.TRI, Stock Forum), who took home $18.8 million, followed by former Talisman Energy Inc.(TSX:T.TLM, Stock Forum) chief executive John Manzoni who pocketed $18.67 million in 2012.
 
The lowest-paid CEO on the top 100 list was Lino A. Saputo, of Montreal-based dairy producer Saputo Inc. (TSX:T.SAP, Stock Forum), who earned $3.85 million.
 
The review also pointed out that three women made it onto the list in 2012 - Linda Hasenfratz, CEO of Linamar Corp. (TSX:T.LNR, Stock Forum), Dawn Farrell, CEO of TransAlta Corp. (TSX:T.TA, Stock Forum), and Nancy Southern, CEO of ATCO Ltd. (TSX:T.ACO.X, Stock Forum).
 
In 2011, only one female executive was in the top 100 ranking.


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llahsram
SHOCKING !! --- moreover the choice of descriptive is VERY questionable --- "earned" ?? "---the average top paid Canadian CEO will have earned as much as the average full-time worker's yearly income." GIVE ME A BREAK --- DISGUSTING
3.5 stars
January 4, 2014
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