CEOs already have annual worker’s pay

By the time average Canadians finished lunch on Thursday, Canada’s top paid CEOs had already earned the equivalent of their annual salary.

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:CP), Hunter Harrison, who was paid $49.1 million in salary, stock options and bonuses in 2012.

Harrison, who retired as chief executive at Canadian National Railway Co. (TSX:CN) 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:TRI), who took home $18.8 million, followed by former Talisman Energy Inc.(TSX:TLM) 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:SAP), 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:LNR), Dawn Farrell, CEO of TransAlta Corp. (TSX:TA), and Nancy Southern, CEO of ATCO Ltd. (TSX:ACO.X).

In 2011, only one female executive was in the top 100 ranking.

Just Posted

Bowden Institution Black Press file photo
Bowden Institution inmate dies from COVID-19 complications

Bowden death the sixth in Canada’s federal prison system

(Contributed)
FOUND: Red Deer youth missing

Red Deer RCMP thank the public for their assistance

President Joe Biden delivers remarks about COVID vaccinations in the South Court Auditorium at the White House, Wednesday, May 12, 2021, in Washington. (AP Photo/Evan Vucci)
Biden team moves swiftly to tackle pipeline political peril

Executive order issued to improve cybersecurity

Street racers gather the evening of Sunday, Aug. 12, 2018, in the parking lot of the Goodwill on Northeast Marine Drive and 122nd Avenue in Portland, Ore. Across America, police are confronting illegal drag racing whose popularity has surged since the coronavirus pandemic and lockdowns began. Drivers have blocked off roads to race and to etch donut patterns on pavement with the tires of their souped-up cars. From Portland, Oregon; to Albuquerque, New Mexico; from Nashville, Tennessee; to New York City, officials are reporting a dangerous, and sometimes deadly, uptick in street racing. (Anna Spoerre /The Oregonian via AP)
US cities see surge in deadly street racing amid pandemic

Shutdowns associated with the pandemic cleared normally clogged highways

Red Deer Mayor Tara Veer and several members of city council helped kick off the spring Green Deer cleanup campaign on Wednesday. Veer said city workers do their best to keep the city looking good, but need volunteer help to get rid of litter that has blown into bushes onto road sides over the winter. (Photo by LANA MICHELIN/Advocate staff)
Red Deer city councillors launch spring Green Deer campaign

Volunteers are needed to keep the city looking good

Toronto FC forward Jozy Altidore, center, celebrates after scoring a goal against the Columbus Crew with teammates from left, forward Tsubasa Endoh, defender Omar Gonzalez and forward Patrick Mullins during the second half of an MLS soccer match, Wednesday, May 12, 2021, in Orlando, Fla. (AP Photo/John Raoux)
Bradley, Altidore scores in Toronto FC’s 2-0 win over Crew

ORLANDO, Fla (AP) — Michael Bradley had a goal and an assist,… Continue reading

A football with the CFL logo sits on a chair during a press conference in Winnipeg, Friday, November 27, 2015. THE CANADIAN PRESS/John Woods
Former defensive lineman Klassen tackling retirement as he did opposing quarterbacks

Klassen spent seven CFL seasons with Montreal, Calgary and Ottawa

FILE - Contestant Lauren Spencer-Smith on an episode of ABC’s American Idol. (American Idol/ABC photo)
‘American Idol’ contestant exits show amid video controversy

A 16-year-old “American Idol” contestant has dropped out of the singing competition… Continue reading

FILE - Ellen DeGeneres appears during a taping of the “The Ellen DeGeneres Show,” in Burbank, Calif. on May 24, 2016. DeGeneres, who has seen ratings hit after allegations of running a toxic workplace, has decided her upcoming season next year will be the last. It coincides with the end of her contract. (AP Photo/John Locher, File)
Ellen DeGeneres to end long-running TV talk show next year

Viewership dropped by 1.1 million people this season

Ottawa Senators centre Josh Norris, right, celebrates his game-winning overtime goal against the Toronto Maple Leafs with left wing Brady Tkachuk Wednesday May 12, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Norris scored winner, Senators beat Maple Leafs 4-3 in Andersen’s return from injury

Norris scored winner, Senators beat Maple Leafs 4-3 in Andersen’s return from injury

Rafael Nadal, of Spain, holds up the trophy after beating Daniil Medvedev, of Russia, in the final at the Rogers Cup tennis tournament, in Montreal on Sunday, Aug. 11, 2019. THE CANADIAN PRESS/Paul Chiasson
Tennis Canada could move top tournaments to US if Toronto, Montreal plan not approved

Tennis Canada could move top tournaments to US if Toronto, Montreal plan not approved

Philadelphia Flyers' Travis Sanheim (6) and Brian Elliott (37) celebrate with teammates after the Flyers won an NHL hockey game against the New Jersey Devils, Monday, May 10, 2021, in Philadelphia. (AP Photo/Matt Slocum)
Puck luck? Hockey’s secrecy makes betting on NHL a gamble

Puck luck? Hockey’s secrecy makes betting on NHL a gamble

FILE - John Davidson, left, president of the New York Rangers, and Rangers general manager Jeff Gorton pose at a news conference in New York, in this Wednesday, May 22, 2019, file photo. The New York Rangers abruptly fired president John Davidson and general manager Jeff Gorton on Wednesday, May 5, 2021 with three games left in the season. Chris Drury was named president and GM. He previously served as associate GM under Davidson and Gorton. (AP Photo/Seth Wenig, File)
New York Rangers fire coach Dave Quinn, 3 assistants

New York Rangers fire coach Dave Quinn, 3 assistants

Most Read