Nearly 1,200 non-unionized CBC/Radio-Canada employees will be eligible for “bonuses” for the 2023-2024 fiscal year, despite the outcry from federal elected officials since the beginning of the year. The public broadcaster is committed to launching “a comprehensive review of the Corporation’s compensation plan, including performance-based pay.”
In a document filed quietly on June 25, the CBC/Radio-Canada board of directors “confirms that it will respect its commitment to the 1,194 employees eligible for the current Short-Term Incentive Compensation Plan” (STIPP), amounts linked to individual and collective performance.
The CA met on June 13 to discuss it, but the announcement of the authorization of the “bonuses” comes a week after the end of parliamentary work in the House of Commons, where the opposition parties have taken turns expressing their indignation at such a possibility in recent months.
“Despite an unfavourable financial environment in 2023-2024, CBC/Radio-Canada has made progress in achieving its performance indicators as approved by the Board of Directors at the beginning of the year,” it says.
Among the objectives studied: CBC/Radio-Canada’s digital reach, Canadians’ engagement with content and audience reflection. The performance indicators are in no way linked to the financial health of the Crown corporation.
For the Canadian Broadcasting Corporation (CBC) Workers’ Union (CWTU), the announcement of “generous” bonuses to executives after months of anxiety among employees threatened by major cuts is “ironic” to say the least.
“Today, we are told: there are 1,194 people who, because of their excellent performance and yield, will be rewarded, I dare to hope that it is not for their management of the work environment and the right to a healthy environment,” reacted Lise Millette, secretary general and treasurer of the STTRC, in an interview with The Press.
“There are projects that have been put on hold, initiatives that have been postponed because efforts had to be made, trips that have been cancelled,” she continues. “But what we learn is that we were still able to free up enough money to pay these bonuses.”
More than 15 million on the table
CEO Catherine Tait has been repeatedly hounded by federal opposition parties over the issue of “bonuses” that would be paid to executives, while the Crown corporation announced in December 2023 the elimination of 800 positions and budget cuts of $125 million. In the end, 346 jobs were eliminated.
Canadian Heritage Minister Pascale St-Onge has always been careful not to comment on potential bonuses, recalling the independence of the public broadcaster. “It’s up to them to answer questions about internal compensation,” she said last December. “They have clear allocations, they have clear budgets. I invite you to ask CBC/Radio-Canada these questions.”
In May, Mme Tait had told the Standing Committee on Canadian Heritage that no decision had yet been made on executive bonuses for the 2023-24 fiscal year. In January, the CEO would not say whether she would give up her bonus during a period of cutbacks. “Everything is on the table,” she said.
“The President and CEO’s performance pay is determined by the Government of Canada following a performance evaluation and a recommendation from the CBC/Radio-Canada Board of Directors,” spokesperson Emma Iannetta said in an email to The Press. “Mme Tait is not part of CBC/Radio-Canada’s incentive compensation program.”
According to Mme Iannetta, the CEO, “has not yet received a bonus and has no idea of the amount” for the 2022-2023 and 2023-2024 financial years. As for senior management, “for confidentiality reasons regarding the compensation of all our employees, we do not have further details,” the spokesperson emphasizes.
The CEO’s total compensation ranges from $472,900 to $623,900, while vice-presidents earn between $282,000 and $686,500, according to CBC/Radio-Canada disclosures. The “bonus” portion is not disclosed by the public broadcaster.
For the 2022-2023 fiscal year, 1,143 non-unionized employees shared performance-based pay of $14.9 million, according to a report obtained by the Canadian Taxpayers Federation following an access to information request. The value of the amounts that will be paid for 2023-2024 under the RRICT is not likely to be known until March 2025.
Through a “domino effect”, the green light for “performance-based pay” risks being very badly received by employees affected by the cuts and by recent retirees who wanted to make way for younger people, believes Mr.me Millette, from the STTRC: “It’s certain that this will fuel a feeling, for some of bitterness, for others of questioning about the governance of the state-owned company.”
A “comprehensive review” of compensation
“The board and senior management team have taken note of the views expressed by some individuals who believe that CBC/Radio-Canada should not pay performance-related pay during a period of financial pressures and resulting workforce adjustments,” says the document published on the Radio-Canada website on June 25. At the request of Catherine Tait, CBC/Radio-Canada will launch “a comprehensive review of the Corporation’s compensation system,” including the performance bonus system. An external firm will be hired and the recommendations to the board must be made public. The changes are likely to be implemented only after Catherine Tait leaves office, scheduled for January 2025 after a shortened second term. “We sense that Radio-Canada, if not that it is uneasy, realizes that the way bonuses are paid needs to be reviewed,” says Lise Millette of the Radio-Canada employees’ union. But rather than doing it quickly, in the same way that employees were asked to tighten their belts right away, we’re saying, ‘Let’s still enjoy the buffet while it’s going, and then we’ll think about whether we should put a little moderation into all of this.'”