Liberals approve massive executive pay hikes

torontosun.com
BY SHAWN JEFFORDS
April 25, 2017

Hefty executive pay hikes and other raises have been quietly approved by Ontario’s Liberal government.

Cabinet ministers defended the changes Tuesday after the Liberals okayed compensation changes for OPG and a pay hike for Metrolinx’s top executive.

At the hydro firm, the company’s new cap on CEO pay is set at $3.8 million. CEO Jeff Lyash was paid just over $2 million in 2016.

But OPG was quick to say Lyash’s pay has now been capped at $1.9 million, including a performance bonus.

Energy Minister Glenn Thibeault said that figure, while generous, is consistent with other comparable jobs with the level of responsibility of OPG’s CEO.

“We’re paying right in the middle of the pack,” he said. “When it comes to making sure that we have smart, reliable people running our nuclear facilities...I think his pay in this sector is fair.”

At Metrolinx, interim CEO John Jensen, who was appointed last month to replace out-going CEO Bruce McCuaig, is already earning more than his predecessor.

Jensen takes over at the agency earning $37,500 a month. That’s the equivalent of earning $450,000 a year. McCuaig made $367,000 in 2016, according to Ontario’s Sunshine List.

Transportation Minister Steven Del Duca defended Jensen’s salary and a new compensation framework adopted by the agency. It means that when a permanent replacement for McCuaig is named, that person will earn between $375,000 to $479,000.

“I recognize that the salaries we’re talking about are a significant amount of money,” he said. “It’s a very generous compensation package.

“At the same time, we are in the midst of the largest build-out of transit infrastructure in the GTHA in our province’s history,” added Del Duca. “It’s critical we had continuity and stable leadership in place to deliver on the mandate. John Jensen provides us with that.”

Last fall, the government asked all public-sector agencies to review executive compensation packages after lifting a five-year wage freeze.

The government intervened earlier this year when it was revealed that some community college were looking at awarding their presidents wage increases of up to 50%.

Opposition parties slammed the Liberal government Tuesday for rubber-stamping the pay hikes and changes to the compensation frameworks.

Progressive Conservative Leader Patrick Brown said the move shows the government is out of touch.

“They think people don’t notice,” Brown said. “They think they can quietly pay these egregious salaries.”

NDP Deputy Leader Jagmeet Singh called on the government to establish an executive salary cap. He said he doesn’t buy the government’s argument that the pay raises are needed to retain the executives.