Business owners have a responsibility to reject an economic system that pools profits at the top.
Not only are boards complicit in the executive compensation rip-off, but the government kicks in a significant share as well.
There's been a lot of outrage over a new report that shows that Canada's wealthiest CEOs are paid 193 times more than the average Canadian. But there's an even darker side to the story. Ordinary taxpayers are subsidizing those multimillion-dollar salaries, courtesy of loopholes in our tax system.
You think that's crazy? Check out the U.S.
"Making it rain" for a top executive is no way to make money for shareholders.
There was a 21% spike in complaints about banking services in 2015.
Regulators have a poor track record of getting executive pay right. Indeed, some say U.S. Congress has been the single greatest driver of increasing CEO pay. According to a survey by Mercer, a majority of UK board members believe the executive pay model is broken. Here are three ways to fix it.
The gap between CEO earnings and workers’ pay is wider in Canada than almost anywhere else in the world, according to data
Here’s a piece of investment advice you probably weren’t expecting: Stay away from companies that pay their CEOs the largest
CEO pay in Canada grew at nearly four times the pace of average earnings in 2013, according to data from Global Governance
Corporate tax giveaways mean that the federal government has foregone billions of dollars in revenues. To pay for the tax breaks, Ottawa has borrowed billions of dollars and driven up the national debt. Now, the government has chosen to make big cuts to public services essential to Canadians in order to pay the bill for its tax giveaways.
In the public sector in Ontario, there have been several governance scandals, including Ontario Power Generation, eHealth, Ontario Lottery and Gaming Corporation, and Ornge, that have included compensation and spending. What this reveals is defective oversight. Governance is not government.
2014 will be the year that workers stop sitting and taking the abuse that has been heaped on them by their employers since the financial crisis. You can only push people so far before you become the company no one wants to work for.
"Peer groups" is a basket of similar or larger companies compared to one company, and "benchmarking" is a decision to pay a CEO at the 50th, 75th or 90th percentile of other CEOs. average. This one issue -- benchmarking against peer groups -- has been responsible for CEO pay increases more than any other.
It may be Labor Day in America, but a Chinese CEO is getting into the true spirit of the holiday by celebrating his workers
Macleans magazine recently released its rundown of who earns what in Canada, crunching the salary numbers for everyone from
Taken as a whole, very high CEO to worker pay ratios can signal systemic wealth disparity. CEO pay has been outstripping executive and worker pay year over year by a wide margin because of structural issues related to "peer group benchmarking" (the very way CEOs are paid). This structural pay inequity is unrelated to CEO performance.
It is hardly surprising that boards do not focus on value creation, strategic planning, or maximizing company performance, survey after survey, as much as they do on compliance. Their compensation structure does not incent them to. Here is what is needed to align director pay with shareholder interests:
Canada's bank CEOs were among some of the highest-paid in North America, and among some of the most overpaid as well, according
Last year the CEO of Canadian Pacific, Hunter Harrison, received $49.2 million in compensation. The difference between regular employees' pay and CEO compensation has grown rapidly in recent years. According to the Canadian Centre for Policy Alternatives, in 1995 the top-paid CEOs received 85 times the earnings of average Canadians.