After breaking a record last year, the premiums paid by Investissement Québec (IQ) fell by nearly 40% due to the net loss recorded by the government corporation.
Some 1,200 IQ employees and executives received the equivalent of $7.1 million in bonuses for the 2022-2023 fiscal year, according to data obtained by The Canadian Press under the Access to Information Act . Last year the company paid out a record $12.3 million in variable incentive compensation.
The net loss largely explains this decrease, specifies IQ in its answer. The institution recorded a loss of $ 224 million during the 2022-2023 financial year, the results of which were revealed at the beginning of June. It thus posted a negative return of 4.8% at a time of great volatility on the stock markets and economic uncertainty.
In addition to financial performance, variable compensation is based on an economic and organizational development factor as well as an individual factor. In its response, IQ states that “the majority” of indicators related to economic and organizational development exceed its objectives.
The Director General of the Institute for Governance of Private and Public Organizations (IGOPP), François Dauphin, sees a good eye that several aspects of IQ’s mission are taken into account in the establishment of compensation. “It’s good that way,” he commented in an interview. It is the financial arm of the government. Investissement Québec must take risks to promote economic development. »
President and CEO Guy LeBlanc received a bonus of $86,737 for the 2022-2023 fiscal year. Last year, the variable portion of his compensation reached $105,000.
Mr. LeBlanc’s compensation had been the subject of criticism from the opposition in Quebec City when it had crossed the million mark for the 2021-2022 fiscal year to settle at $ 1.1 million.
On average, the other job categories suffered a greater decline in their incentive compensation. For all employees and officers, the average bonus is $5,853, compared to $11,244 for the same period last year.
Mr. Dauphin points out that more of Mr. LeBlanc’s compensation is tied to long-term criteria. “It is less affected by what happens for a single year, but the drop could be greater if the situation were to repeat itself. »
Annual bonuses are a tool for retaining employees, while IQ must compete with employers in the financial sector, points out Mr. Dauphin. However, he does not believe that the decrease in premiums this year causes problems in this regard.
“It has been a difficult year in the financial sector and we can think that we have witnessed the same thing. I would even say that the fact that we are not only taking performance has been an advantage for employees and has reduced the risk. »