OTTAWA -- Tough times don't necessarily mean lean times for some of Canada's top public servants. As many Canadians lose their jobs or struggle to make ends meet, Canada Post president Moya Green is eligible for a $641,000 public pay packet in base salary and performance bonus. While that's less than some CEOs in the private sector, it's more than double the prime minister's annual remuneration and five times more than the governor general's pay.
A Sun Media survey of top government appointees shows most of the highest-paid bureaucrats head up Crown corporations. Karen Kingsley, president of the Canada Mortgage and Housing Corp. and CBC president Hubert Lacroix are both eligible to earn more than a half-million dollars a year in salary and bonuses, while Mark Carney, the governor of the Bank of Canada, makes a maximum of $429,560.
Most executive salaries are based on recommendations from an independent five-member advisory committee that uses benchmarks based on private sector and other public sector salaries. Last year, the Treasury Board accepted the committee's recommendation to hike executive compensation by 4% -- a 2% salary raise and a performance bonus boost of 2.1%.
But generous increases might not be in the cards this year.
The committee has already submitted its latest report, and while it has not been made public yet, the chairwoman told Sun Media this year's advice is to be "very prudent" in keeping with tough times.
"We are making recommendations this year that will reflect what's going on in the economy," said Carol Stephenson, dean of the Richard Ivey School of Business at the University of Western Ontario.
Temporary belt-tightening aside, Stephenson said it is crucial for bureaucrats to be fairly compensated. Taxpayers might have a limited appetite for big salaries and bonuses, but she said the public must also keep in mind that government workers aren't eligible for shares and other options often awarded to their private-sector peers.
"You need to retain and attract top executive talent for the public service -- no different than the private sector," she said.
Pointing to Canada Post as an example, Stephenson said the size and complexity of the corporation in terms of revenue and employee numbers warrant a good salary.
"Just the sheer commercial nature and size and scope, I think they certainly do justify what they get," she said. "They may look high, but they're actually not when you compare it to the market."
National Citizens Coalition president Peter Coleman disagrees, arguing that pay scales for most public sector executives have run amok. He said there are likely many qualified professionals who would take public service jobs for much less pay.
"Some of these salaries are obscene in good times, and they're really obscene now in bad times," he said.
Coleman said public sector executives and politicians have a "fiduciary duty" to exercise restraint and show leadership during an economic downturn.
His organization is launching a campaign this month demanding spending and salary cuts across the government.
"We need them to set the right tone, but nobody is volunteering to give back anything. No one is even talking about it," he said. "There should be a process where they have to show leadership when government money is involved."
kathleen.harris@sunmedia.ca
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Top 10 highest paid bureaucrats
1. MOYA GREENE, President, Canada Post
Jan. 1, 2007: $386,800-$455,000
Bonus: up to 25%
Maximum pay: $568,750
Jan. 1, 2008: $410,000-$482,400
Bonus: up to 33%
Maximum pay: $641,592
2. HUBERT LACROIX, President, CBC
April 1, 2007: $322,200-$379,100
Bonus: up to 20%
Maximum pay: $454,920
Jan. 4, 2008: $341,700-$402,000
Bonus: up to 28%
Maximum pay: $514,560
3. KAREN KINSLEY, President, CMHC
Jan. 1, 2007: $268,500-$315,900
Bonus: up to 15%
Maximum pay: $363,285
Jan. 1, 2008: $341,700-$402,000
Bonus: up to 28%
Maximum pay: $514,560
4. HUGH MACDIARMID, President/CEO, AECL
Jan. 2, 2008$322,200-$378,100
Bonus: up to 15%
Maximum pay: $434,815
Jan. 4, 2008: $322,200-$378,100
Bonus: up to 28%
Maximum pay: $483,968
5. MARK CARNEY, Governor, Bank of Canada
(position is outside the CEO Crown corp. structure)
Governor, Bank of Canada
Salary: $365,200-$429,600
Performance bonus award: 0
Maximum pay: $429,600
6. JEAN-RENE HALDE, President, BDC
April 1, 2007$267,700-$314,900
Bonus: up to 15%
Maximum pay: $362,135
Jan. 4, 2008: $284,800-$335,000
Bonus: up to 28%
Maximum pay: $428,800
7. ERIC SIEGEL, President, EDC
Jan. 1, 2007: $268,500-$314,900
Bonus: up to 15%
Maximum pay: $362,135
Jan. 1, 2008: $284,800-$335,000
Bonus: up to 28%
Maximum pay: $428,800
8. IAN BENNETT, Master of the Mint, RCM
Jan. 1, 2007$267,700-$314,9000
Bonus: up to 15%
Maximum pay: $362,135
Jan. 1, 2008: $267,700-$314,900
Bonus: up to 26%
Maximum pay: $396,774
9. GREG STEWART, President, Farm Credit Canada
Jan. 1, 2008: $268,500-$314,900
Bonus: up to 15%
Maximum pay: $362,135
Jan. 4, 2008: $268,500-$314,900
Bonus: up to 26%
Maximum pay: $396,774
10. PAUL COTE, President/CEO, Via Rail
Jan. 1, 2007$233,500-$274,700
Bonus: up to 15%
Maximum pay: $315,905
Jan. 1, 2008: $237,300-$279,200
Bonus: up to 26%
Maximum pay: $351,792
Other notables
Beverley McLachlin, Chief Justice, Supreme Court of Canada $349,800
Stephen Harper, Prime Minister of Canada $310,800
Sheila Fraser, Auditor General of Canada $309,300
Michael Ignatieff, Leader of the Official Opposition $229,800
Michaelle Jean, Governor General of Canada $121,575
Other notable salaries in the range of $197,800 - $ 232,700, with bonuses of up to 26%
Guy Saint-Pierre, President and CEO of the Canada Deposit Insurance Corporation
Marc Whittingham, President of the Canadian Commercial Corporation
Michele McKenzie, President of the Canadian Tourism Commission
David M. Malone, President of the International Development Research Centre
