CBC Eliminates Executive and Staff Bonuses, Boosts Salaries for Compensation
CBC/Radio-Canada has revealed it will cease distributing millions in bonuses to executives and employees, opting instead to enhance salaries to “attract and retain the talent it needs for success.”
“To maintain overall compensation at the current median level, adjustments will be made to the salaries of those impacted by the removal of individual performance pay,” the board noted in its statement.
This decision follows criticism directed at the CBC/Radio-Canada board for distributing over $18.4 million in bonuses to nearly 1,200 employees, including managers and executives, during the 2023-2024 fiscal year, despite laying off hundreds of staff.
Mercer advised that if CBC chooses to eliminate its performance-based incentive system, it must ensure compensation remains at the “midpoint of the market.”
“Though CBC/Radio-Canada’s incentive benchmarks are generally conservative in relation to the market, completely eliminating incentives could lead to compensation falling below market standards,” the report indicated.
“CBC/Radio-Canada must ensure it doesn’t fall below market rates if it aims to retain and attract the skills and expertise necessary to fulfill its national mandate.”
The Epoch Times reached out to CBC for clarification on the new pay structure and its implementation date but has not yet received a response as of publication.
CBC Payouts and Funding
Opposition parties and governmental committees have recently criticized the public broadcaster for providing substantial bonuses to executives amid continued staff lay-offs.
On average, executives received bonuses exceeding $73,000 each, a figure that surpasses the median family income after taxes for 2022, according to Statistics Canada.
More than $10.4 million was distributed among 631 managers, while approximately $4.6 million was shared with 518 other employees.
Former CEO Catherine Tait faced scrutiny from MPs during a parliamentary committee last year for not renouncing her potential bonus during a period of ongoing layoffs intended to balance the budget. She was called to testify before a parliamentary committee last fall regarding budget issues and expenditures.
The news organization is poised to receive $1.4 billion in federal subsidies for the fiscal year 2024-2025, an increase from the prior year’s $1.3 billion.
A part of the overhaul aims to “fully equip” CBC/Radio-Canada to “combat disinformation, ensuring Canadians have a reliable news source,” according to Carney.