"Workers across the country are working harder and longer than ever before, only to see their wages frozen and rolled back or jobs eliminated, while CEOs enjoy the riches of our labour. This report reveals just how dramatic the wage divide really is." - James Clancy, NUPGE National President.
Ottawa (08 Jan. 2014) – A new report looking into the compensation packages for CEOs in Canada says that the country's highest paid CEOs now make 171 times more than Canadians earning the average wage.
CCPA report analyses Canadian CEO compensation packages
The report, released by the Canadian Centre for Policy Alternatives, was launched on January 2, the day on which Canadian CEOs already took home as much as what most Canadians will earn in the 365 days of 2014.
All in a Day's Work? CEO Pay in Canada looks at 2012 compensation levels for the country's highest paid, finding that they took home an average of $7.96 million compared to the average Canadian wage of $46,634.
Other key findings from the report include:
- Compensation of Canada’s highest paid 100 CEOs continues to skyrocket, with earnings 171 times higher than the average Canadian income earner—up from 105 times more in 1998
- There is a new CEO at the top of the compensation list: E. Hunter Harrison, CEO of Canadian Pacific Railway, was Canada’s highest paid CEO in 2012, pocketing $49.1 million in 2012
- The lowest paid of the top 100 CEOs pocketed $3.85 million
- There are only three women among Canada’s 100 highest paid CEOs
- Shares and stock options comprise a significant portion of CEO pay
- Among Canada’s highest paid 100 CEOs, 78 of them received part of their pay in grants of stock and 78 enjoyed stock options
- The average share in grant in 2012 was valued at $2.87 million; the average option award was valued at $2.17 million
Canadians increasingly frustrated with rising CEO compensation packages
"This report confirms what we have been talking about in our All Together Now! campaign about income inequality, "says James Clancy, National President of the National Union of Public and General Employees (NUPGE). "Workers across the country are working harder and longer than ever before, only to see their wages frozen and rolled back or jobs eliminated, while CEOs enjoy the riches of our labour. This report reveals just how dramatic the wage divide really is."
"As the report shows, stock options are comprising more and more of a CEO's compensation. This becomes a huge problem, since they only pay half the tax rate on these options. These loopholes are one of the reasons why tax fairness remains at the heart of our campaign," Clancy continued. "They are unfair to other Canadians who pay their fair share, but more so they are just bad for the Canadian economy."
"Think of what $1 billion in lost revenue could do for the country. We need a federal government that will start making changes to address this growing divide."
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE