The CBC and Radio-Canada board of directors has approved bonuses for some employees, even though MPs said it would be inappropriate to do so after hundreds of jobs were cut.
The decision was quietly published on the public broadcaster’s website last month, following a board meeting.
A CBC spokesperson would not disclose how much money will be distributed to the 1,194 eligible employees in the 2023-24 fiscal year, saying that is internal information.
The public broadcaster insisted that the money constitutes performance-related pay and is part of some employees’ overall total compensation under existing contracts, which is to be paid when certain company targets are met.
However, its board of directors recognised the opportunity to award bonuses for the same financial year that saw 141 employees laid off and 205 vacant positions eliminated.
“The board of directors and the senior management team recognize the views expressed by some that performance-related pay should not be provided at CBC/Radio-Canada during a period of financial pressures and associated workforce reductions,” the board agreed in a letter dated June 25.
As a result, the Board of Directors announced that it would launch a review of its compensation plan, including performance-based pay, for the coming years.
“This review will be conducted by a third-party human resources consulting firm, and recommendations to the board will be shared with the public,” the board said.
Bonuses deemed inappropriate
Following the announcement of layoffs at the public broadcaster, president and CEO Catherine Tait was questioned at two parliamentary committee hearings about whether bonuses would be paid for the financial year ending March 31.
CBC announced in December that it was preparing to cut 600 jobs, eliminate 200 vacant positions and cut production costs by $40 million to meet a then-projected $125 million deficit.
Mme Tait was called before the House of Commons Standing Committee on Canadian Heritage to answer questions about the spending cuts, and was asked whether she would accept a bonus for the fiscal year ending March 31.
It is not known whether Mme Tait eventually accepted a bonus.
The committee’s members concluded in a report to the House that given the job cuts, it would be inappropriate for CBC to award bonuses to members of the executive.
The public broadcaster said its financial situation is improving because of recent layoffs, operational cost cuts and an extra $42 million injection in this year’s federal budget.
Mme Tait told the heritage committee in May that the estimated $125 million deficit for 2024-25 had fallen to $20 million.
Conservative spokeswoman Rachael Thomas said Mme Tait “continues to find ways to hand out large taxpayer-funded bonuses to staff, executives and herself” for what she calls a “trusted propaganda arm of the Liberal Party.”
She added in a statement on Monday that Mme Tait had “given millions in bonuses to executives as they cut radio and television and eliminated jobs amid declining ratings and growing irrelevance to the Canadian public.”
The editorial independence of the Canadian Broadcasting Corporation from the government is enshrined in law.
CBC has released information on bonuses from previous years under the Access to Information Act, including in 2022-23, when $14.9 million was paid to eligible employees.