Over the past year, wages for Quebec’s big bosses have continued to rise faster than all workers, helping to widen the wealth gap.
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According to a compilation compiled by Le Journal, the 30 highest-paid CEOs in Quebec saw their total compensation increase by more than 15% on average in 2022.
That’s more than the 7.7% increase observed by Equilar in CEO compensation for 154 of America’s largest companies.
That’s double inflation, which skyrocketed in Quebec last year and hit 6.7%.
And that’s three times more than the increase in the average weekly wage paid to workers in Quebec, which was 4.5% in 2022.
CEOs “have maintained and even increased their purchasing power despite inflation,” notes François Dauphin of the Institute on Governance.
“We’ve reached new heights,” he adds. Let’s assume inflation is rampant for CEOs too.
Average $9 million
The average compensation for the 30 highest-paid CEOs last year was around $9 million. That’s 153 times the average wage for workers in Quebec, which was nearly $59,000.
“The trend is rising this year: there are greater inequalities,” summarizes Mr. Dauphin.
The record for this likely belongs to Dollarama CEO Neil Rossy. The more than $10.6 million in compensation awarded to him in 2022 represents no less than 279 times the average compensation of approximately $38,100 paid to the retailer’s approximately 14,750 full-time equivalent employees.
CEO compensation typically consists of a base salary (ranging from $545,000 to over $1 million), a cash bonus, stock and stock option awards, payments into a retirement plan, and expense allowances (particularly for a company car).
Stock and option awards largely explain the non-standard compensation awarded to Lightspeed Commerce CEOs Jean Paul Chauvet and Nuvei CEOs Philip Fayer. They may increase or decrease in value over time. In 2021, Mr. Fayer’s compensation totaled over $140 million, but given Nuvei’s stock market decline, it’s unlikely the leader will receive that total in full.
Goals that are too easy to achieve?
The payment of cash bonuses depends on the achievement of targets set at the beginning of the year – these are primarily financial targets.
“Goals are usually always achieved. “There are few companies that don’t pay bonuses if targets are not met,” notes François Dauphin.
“Have fears of an economic slowdown and recession made it possible to set more easily achievable targets? That could be an explanation,” he continues.
Note, however, that Gildan, Alimentation Couche-Tard, Nuvei, and Transcontinental, among others, all reduced bonuses paid to their CEOs over the past year.
