At $14.3 million, the average compensation of the 100 highest-paid CEOs in Canada hit a new high in 2021, driven in part by high inflation.
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The previous record of $11.8 million was reached in 2018, the Canadian Center for Policy Alternatives (CCPA) said in a statement released Tuesday.
In 2021, the highest-paid executives earned 243 times the Canadian median salary, which was $58,800 at the time. That ratio was 227 times in 2018.
“So we can say that less than an hour into the first day of the year, the highest-paid CEOs in Canada have already earned an average of $58,800,” notes David Macdonald, senior economist at the CCPA.
In an analytical report, Mr Macdonald attributes much of the increase in big bosses’ pay to inflation, which had already accelerated in 2021 and boosted profits at several large companies.
“We think that inflation is bad for everyone, but for CEOs it’s a never-ending bonanza,” denounces the specialist. Historically high profits based on historically high inflation have translated into historically high bonuses for CEOs.”
A Quebecer at the top
It is Quebecer Philip Fayer, CEO of Montreal-based company Nuvei, who was entitled to the country’s highest compensation in 2021, at $141 million. Most of that compensation, however, is made up of stocks and stock options, which have lost value in 2022.
Of the country’s 100 highest-paid CEOs, 19 head companies officially headquartered in Quebec.
Hoping to curb executives’ appetites, the CCPA proposes that governments introduce four tax measures that would increase taxation on their compensation.
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