According to data from the Canadian Centre for Policy Alternatives (CCPA), the top 100 chief executive officers (CEOs) in Canada earned an average of $14.3 million in 2021, breaking the previous high of $11.8 million set in 2018.
The majority of the CEOs’ earnings came from variable payment, which includes bonuses and stock option awards, rather than their salaries.
Philip Fayer, CEO of Nuvei (NVEI), received the largest salary of any CEO in Canada in 2021, earning close to $141 million. In the previous year, the stock price of Nuvei fell by 58%
CEOs Record Pay Smashes Record
- The 100 highest-paid CEOs in Canada have had a successful year.
- Consumers have been struck hard by inflation, while average top CEO compensation surpassed the previous record of $11.8 million in 2018
- It reached $14.3 million in 2021, creating a new record high in our data series.
- This is an increase of 31.2% above the $10.9 million average salary from the prior year.
Inflation and Record CEO Pay
It’s critical for understanding the context of this CEO pay record-breaking year. both in 2021 and 2022
- In the second quarter of 2022 Corporate after-tax profits made for 18.5% of GDP
- That trend has intensified due to the recent two-year period of inflation.
- The corporate after-tax profit-to-GDP ratio in the first two quarters of 2021 rose to an all-time high of 18%.
- It increased significantly in 2021 in part due to the profit-to-GDP ratio remaining stable throughout the recession of 2020.
CEO Pay is Influenced by Various Factors
The CEOs who rule corporate Canada have received historic compensation as a result of this historic capture of the economic sectors of Canada by corporate profits when inflation was out of control.
- Variable compensation, sometimes known as performance-based pay (although most people would just refer to it as bonuses),
- The primary cause of the widening pay gap between CEOs and regular employees. Imaginarily
- This component of a CEO’s salary is determined by how well the company performs on numerous success indicators.
- Bonuses are consistently weighted towards the company, providing greater near-term benefits to shareholders.
More Marks as Top CEOs than Women
- In Canada, gender equity in the C-suite has always been shockingly lacking.
- Only three women reached the top 100 list in 2021, despite CEOs earning more money than ever.
- Although women tied Michaels and Scott’s, there were actually four more Marks than there were females.
- There is little reason to believe that the 97% male majority among Canada’s wealthiest CEOs will change.
Canada Highest Paid CEOs
Given their disclosed remuneration packages, these Canadian CEOs earn some of the highest salaries.
Michael Rousseau (Air Canada): former Air Canada CEO. His salary, incentives, and stock options all made up around $11 million of his total pay in 2019.
Al Monaco (Enbridge): CEO of Enbridge, a significant provider of energy infrastructure. His total pay in 2020 was close to $15 million.
Donald Walker (Magna International): former CEO of the international automotive supplier Magna International. He was among the top-paid CEOs in Canada, though exact compensation information may differ.
Inflation causes Canadian CEO salary to Reach an all-time High.
In order to reduce the severe income disparity between the wealthy and the rest of us, this research offers four policy recommendations for governments, including
- limiting corporate deductions for salaries above $1 million
- Eliminating the capital gains inclusion rate loophole, which is largely utilized by the wealthy
- The introduction of increased top marginal tax rates
- Setting up a wealth tax
Has there been any notable Canadian CEO with exceptionally high compensation?
Yes, a few well-known Canadian CEOs have gotten big pay packages. For instance, among the highest-paid executives in Canada were Michael Rousseau, the former CEO of Air Canada, and Donald Walker, the former CEO of Magna International. But it’s important to remember that CEO pay can change from year to year and across various businesses.
Reference: https://www.ctvnews.ca, https://www.theglobeandmail.com, https://policyalternatives.ca