Skip to main content

Careers In fewer than two days, top Canadian CEOs earn an average worker’s annual salary

Canadian Pacific Railway chief Hunter Harrison.

Moe Doiron/The Globe and Mail

By the time average Canadians finish lunch on Thursday, Canada's top paid CEOs will have 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 been 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.

Story continues below advertisement

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 6 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, 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. 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., who took home $18.8 million, followed by former Talisman Energy Inc. 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 Saputo Inc., 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., Dawn Farrell, CEO of TransAlta Corp. (TSX:TA), and Nancy Southern, CEO of ATCO Ltd.

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

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Discussion loading ...

Cannabis pro newsletter