Muammar
IBX-Jakarta. In 2022, Canada’s top 100 highest-paid CEOs achieved unprecedented compensation levels, as per the Canadian Centre for Policy Alternatives (CCPA). Senior economist David Macdonald noted, “This year’s data sets new all-time records.”
The CCPA’s annual report discovered that predominantly male CEOs received an average pay of $14.9 million, up from $14.3 million in 2021. This equates to $7,162 per hour, a staggering 246 times more than the average Canadian worker’s earnings. Shockingly, by the end of just the second day of the year, the average CEO already surpassed the yearly salary of an average worker, the report highlighted.
Throughout 2022, the wage discrepancy widened further: while the average worker experienced a 3% pay increase, CEOs’ compensation surged by an average of 4.4%. Simultaneously, the report indicated a 6.8% rise in prices, contributing to this disparity. Macdonald pointed out, “This mirrors the trend seen in 2021, with inflation driving profits, thereby influencing bonuses and resulting in substantial gains for CEOs.” Tracking CEO pay for over a decade and a half, the CCPA observed that initially, CEOs made roughly 150 times the average worker’s pay. Most of the CEO compensation doesn’t derive from salaries but rather from bonuses, company shares, and stock options, and in some cases, CEOs don’t receive a salary at all.
Macdonald highlighted the 2021 change where the stock-option tax deduction was limited to $200,000. Consequently, granting shares became a more prominent aspect of CEO compensation. The report’s scope includes current and former Canadian CEOs in 2022, as well as executive chairs. J. Patrick Doyle, the executive chairman of Restaurant Brands International Inc., topped the list, earning $151.8 million exclusively through share and option-based awards.
Following Doyle, CEO Matthew Proud of Dye & Durham Ltd. secured the second position, amassing $98.9 million solely through option-based awards. Magna International Inc.’s CEO, Seetarama (Swamy) Kotagiri, ranked third with a total compensation of $36.4 million from various sources. The top earners represented diverse sectors like finance, technology, energy, telecommunications, and healthcare. Remarkably, only four of the highest earners were women, equal to the count of individuals named “Mark” and “Scott.” Macdonald emphasized, “This represents a disparity in gender representation within this domain.”
Highlighting Ontario’s disproportionate disparity, Macdonald noted that the highest-paid CEOs in the province make 298 times the average Ontario worker, earning $18.5 million. The report proposes implementing new top income tax brackets, eliminating corporate deductibility for pay packages exceeding $1 million, introducing a wealth tax, and raising the capital gains inclusion rate. Despite the economic downturn in 2023, Macdonald expressed skepticism that CEO compensation would necessarily decrease in tandem with the weakening economy. He highlighted historical patterns where companies have found alternate justifications to maintain CEOs’ high compensations, irrespective of lower profits. “In essence, it’s a win-win situation for CEOs, regardless of market conditions,” Macdonald concluded.
Source: Canada’s 100 highest-paid CEOs broke new compensation records in 2022: report (msn.com)
*Disclaimer*
