Canadian CEO Salaries

[SkyRider]

"The top 100 highest-paid CEOs in Canada now make, on average, $9.2 million—more than 190 times the average Canadian income of $47,358. And with Onex CEO Gerry Schwartz taking the number-one spot on the list this year with a total pay package of $87.9 million, many of our CEOs are paid many times more than that.Jan 20, 2015"

$9.2 million sounds like a lot of money but we are talking about the CEO's of major corporations. MLB players can make $30 million, NBA players can make north of $30 million, Justin Bieber makes north of $50 million. So, is the average CEO overpaid, especially if he/she is also the founder of the company like a Bill Gates?

 

[explorerzip]

I'm fine with a CEO or any employee making as much as they can as long as they excel at their job. I have a big problem with a CEO like the one from Target Canada that got millions in severance for basically bankrupting the company; he should have got nothing. The trouble with CEO's and other executives is that they frequently 'excel' at their jobs by buying other businesses and cutting the workforce.

http://www.huffingtonpost.ca/2015/01/21/target-ceo-severance-canadian-workers_n_6517272.html

 

[SkyRider]

I have a big problem with a CEO like the one from Target Canada that got millions in severance for basically bankrupting the company; he should have got nothing.

I don't know the details in the Target case but often these payouts are contractual i.e. the person would not have accepted the job unless he/she is guaranteed a payout.

Again, I don't know the details but the CEO of Potash fought a takeover by an Australian company that would have paid him something like US$445 million (more or less). He successfully fought the takeover and the value of his stock plummeted. Weird, eh.
http://www.financialpost.com/personal-finance/Doyle+would+million+buys+Potash/3418424/story.html

(P.S. I would have taken the US$445million in a heartbeat. That's more than what an MLB player makes.)

 

[explorerzip]

I don't know the details in the Target case but often these payouts are contractual i.e. the person would not have accepted the job unless he/she is guaranteed a payout.

Again, I don't know the details but the CEO of Potash fought a takeover by an Australian company that would have paid him something like US$445 million (more or less). He successfully fought the takeover and the value of his stock plummeted. Weird, eh.
http://www.financialpost.com/personal-finance/Doyle+would+million+buys+Potash/3418424/story.html

(P.S. I would have taken the US$445million in a heartbeat. That's more than what an MLB player makes.)

Then that would be a major problem with those executive level contracts. It should be rewarding success not failure. Got to love how the CEO gets a guaranteed payout when he totally fucks up, but the workers have to sue the company for the crumbs.

 

[SkyRider]

Then that would be a major problem with those executive level contracts. It should be rewarding success not failure. Got to love how the CEO gets a guaranteed payout when he totally fucks up, but the workers have to sue the company for the crumbs.

In another thread I read where some guy bought Sears and basically looted the company.

Anyway, executives are like free agent MLB players. If you don't offer them $100million, somebody else will. That is why I like owner/managers, they risk their own money.

I still can't believe that Potash guy who fought a takeover that would have paid him north of US$440
million. How dumb is that?

 

[explorerzip]

In another thread I read where some guy bought Sears and basically looted the company.

Anyway, executives are like free agent MLB players. If you don't offer them $100million, somebody else will. That is why I like owner/managers, they risk their own money.

I still can't believe that Potash guy who fought a takeover that would have paid him north of US$440
million. How dumb is that?

Once you're in the millionaires or billionaires club, money is basically meaningless. Maybe Potash was his baby and would never sell no matter the price. So it's an ego filled decision instead of a logical business one.

IMO, it's better to own a tiny fraction of a billion dollar company than own 100% of a worthless company.

 

[desert monk]

I have no problem with the high salaries, just tax them at the same or higher rate that you do average middle class people.

 

[onceaday]

The real issue is the risk/reward factor. For example if you come into an organization as CEO and bomb/get fired you are still looking at millions in severance. Countless examples of this including in the public/healthcare sector. However if you are making shareholders money, have at it.

 

[Denmae]

I have no problem with the high salaries, just tax them at the same or higher rate that you do average middle class people.

Why tax them more ?
Why not tax them less so they spend more which in turn puts money back into the economy
They would also have more money to donate to charities
Maybe a different situation if the government used the extra tax money wisely. But instead they'll just waste it
On whatever they feel like with no accountability

 

[lakebear]

The idea of taxing thses elites does NOT work, there are tax loop holes for these people. It is the same group of top establishment that makes up the tax rules of the country. A real sweet deal, for them ayway!

I have no problem with the high salaries, just tax them at the same or higher rate that you do average middle class people.

 

[bishop]

There is a nasty secret as to why CEOs make so much. The board of directors is usually composed of CEOs from other companys. The CEOs just make an agreement that they will all vote for each other to get increased compensation.

 

[frankcastle]

The idea of taxing thses elites does NOT work, there are tax loop holes for these people. It is the same group of top establishment that makes up the tax rules of the country. A real sweet deal, for them ayway!

I think that's what desert monk was getting at that they should pay their fair share of taxes. I know he is American but how does Trump skip out on such a large sum in taxes?

 

[Tony2Tap]

I have no problem with the high salaries, just tax them at the same or higher rate that you do average middle class people.

They are taxed at the same (if you make over 220k) or a higher rate than you: 53.53% in Ontario. This isn't the US.

 

[SkyRider]

Question: Are CEO's overpaid when compared to LeBron James, Justin Bieber, Tom Cruise, Clayton Kershaw, etc.?

Mariah Carey got $1 million for singing 2 songs at the bay. Isn't that outrageous?

 

[huckfinn]

Question: Are CEO's overpaid when compared to LeBron James, Justin Bieber, Tom Cruise, Clayton Kershaw, etc.?

Mariah Carey got $1 million for singing 2 songs at the bay. Isn't that outrageous?

Yup it is....but they were willing to pay.

Thank goodness she didn't have a meltdown!

 

[SkyRider]

Ron Joyce is an example of a successful Canadian entrepreneur. Built Tim Hortons from scratch. Still dallying with young women at his advanced age.
https://en.wikipedia.org/wiki/Ron_Joyce

One of the co-founders of Second Cup was a panhandler at one point in his life.
http://www.insidetoronto.com/community-story/55962-from-the-streets-to-founding-second-cup/

I think people like the above deserve every cent they got. Capitalism isn't quite dead in Canada yet.

 

[lurkerdick]

I'm fine with a CEO or any employee making as much as they can as long as they excel at their job. I have a big problem with a CEO like the one from Target Canada that got millions in severance for basically bankrupting the company; he should have got nothing. The trouble with CEO's and other executives is that they frequently 'excel' at their jobs by buying other businesses and cutting the workforce.

http://www.huffingtonpost.ca/2015/01/21/target-ceo-severance-canadian-workers_n_6517272.html

more than just bankrupt the company...LOL

http://globalnews.ca/news/1790027/target-canada-owes-tens-of-millions-in-unpaid-taxes-rent/

I like how Hydro one did that "privatization card" so people can no longer see and complain how much someone gets paid :flypig:

 

[bishop]

Question: Are CEO's overpaid when compared to LeBron James, Justin Bieber, Tom Cruise, Clayton Kershaw, etc.?

Mariah Carey got $1 million for singing 2 songs at the bay. Isn't that outrageous?

Those people directly generate money. If Lebron suddenly contributed no points or Carey lost her voice they would be earning nothing. A CEO of a failing company, who is not performing still gets all the benefits that a high performing CEO would get. That Carly Fiona (SP?) who ran HP into the ground, still got top dollar and a golden parachute, how the fuck does that make sense? It does not make sense, there are other things/scams at play.

 

[Don Draper]

The idea of taxing thses elites does NOT work, there are tax loop holes for these people. It is the same group of top establishment that makes up the tax rules of the country. A real sweet deal, for them ayway!

That is correct.

CEO's of this ilk register a separate corporation under a registered name. They then pay themselves out of their own smaller corporation. They are taxed at a 'corporate' rate and not 'individual' so therefore their tax base is much lower. You then take the money you have saved in corporate taxes and invest it in all sorts of protected funds that save you even further taxes. Your basic 'nest egg' is so large anyway that handling and investing your corporate funds becomes a full time job along with the CEO job you have to do already. You then pay your taxes either monthly or quarterly which minimizes the impact as it becomes part of the monthly/quarterly budget anyway. Unlike Joe Schmoe who gets walloped with a massive one time hit when it comes to paying his individual taxes.

At this level, 'Corporate Tax Co-Ordination' becomes a de ri·gueur process where it's part of the same conversation over scotch with accountants, investors, politicians and CEO's, all who administer and guide the tax and investment laws in this country. Of course, to their benefit and those who look to educate themselves in this process as well. If these laws are made then they will serve all anyway. Many people of more humble tax brackets are not even aware of this process or that it even exists.

Not saying it's good. Not saying it's bad either. Just saying this is how it works.

 

[bishop]

Ron Joyce is an example of a successful Canadian entrepreneur. Built Tim Hortons from scratch. Still dallying with young women at his advanced age.
https://en.wikipedia.org/wiki/Ron_Joyce

One of the co-founders of Second Cup was a panhandler at one point in his life.
http://www.insidetoronto.com/community-story/55962-from-the-streets-to-founding-second-cup/

I think people like the above deserve every cent they got. Capitalism isn't quite dead in Canada yet.

Those people built their fortune, they hold or held the title of CEO but they were much more than the typical CEO. Like steve jobs was CEO of apple but he was much more, he was apple, the dbag that took over after he died also has the title of CEO and is probably payed similar to what Jobs was paid, but is he anywhere near Steve Job's level?