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Canada's top 100 CEOs have already earned more than average Canadian will all year – CBC.ca

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By 10:09 a.m. on January 2nd, Canada’s highest paid CEOs had made as much money as the average Canadian will earn all year, according to a new report.

In its annual report on CEO compensation, the Canadian Centre for Policy Alternatives (CCPA) found the gap between CEO compensation and average worker salary “growing larger and more difficult to rationalize.” The 100 highest paid chief executives earned an average of 227 times more than the average worker in 2018, the most recent time period for which data is available.

The average individual income in Canada was $52,061 in 2018, but each of the top 100 CEOs on the S&P/TSX Composite Index earned an average of $11.8 million. That beat the previous record for top executive salary, which averaged $10.4 million in 2016.

“Just a decade ago you’d have to wait until after lunch [on Jan. 2] before they’d made your salary,” said David Macdonald, senior economist with the CCPA, a non-profit think-tank that focuses on issues including social justice and economic equality. 

“The trend is pretty clear that there is no stopping CEO pay increases, and there doesn’t seem to be any indication also on the other side that worker pay is going to start going up somehow much more rapidly than inflation.”

CEO compensation continues to grow exponentially faster than average pay. While the average Canadian worker saw their pay rise 2.6 per cent between 2017 and 2018, keeping just ahead of inflation, top CEOs received an 18 per cent pay boost in that same time period.

Over the course of a decade, the report found that average-income workers saw their pay grow 24 per cent between 2008 and 2018. But during that same 10 years, Canada’s top 100 CEOs got a 61 per cent raise.

Are sky-high salaries needed to retain CEOs?

Those in favour of CEO pay increases often say the big pay bumps are required to keep CEOs from fleeing to greener pastures.

But the CCPA found there doesn’t seem to be much poaching happening in C-suites here. The report said 76 per cent of the top 100 CEOs were promoted internally, not recruited into their roles. They’ve spent an average of 18 years with their current company, said Macdonald.

“They don’t flit about from company to company…. They understand the companies they work for, the industry, their competitors, the products that they sell, and that’s what makes them suitable for the CEO chair. It’s not just because they happened to have been a CEO someplace else.”

It’s actually quite difficult even for shareholders within companies to restrict CEO pay.– David Macdonald, senior economist, CCPA

If that’s the case, who is signing off on these big pay bumps?

A small circle near the top, said Macdonald.

“It’s actually quite difficult even for shareholders within companies to restrict CEO pay,” he said. “Oftentimes there’s quite a tight relationship between the CEO, the board of directors for the company, the consultant that comes in to recommend what the CEO should make. These folks all know each other.”

Possible policy changes

Some of the biggest bucks in CEO compensation come in the form of stocks and stock options.

Macdonald said this means that astronomical executive pay is subsidized through the tax system, which taxes these earnings at a much lower rate. That’s because both stock options and the stocks themselves are subject to tax loopholes that average workers can’t access, he said.

Although changes to tax law have been promised since 2015, Macdonald said he’s optimistic there will be changes to loopholes in 2020. Federal liberals made a 2019 election campaign promise to curb or close these loopholes, and based on information shared in the fall fiscal update, seem poised to make good in the spring budget, said Macdonald. 

“It’s booked into the fiscal framework now, so it is something they will either have to go through with or pretty explicitly back down from.”

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B.C. Conservatives promise to end stumpage fees, review fire management if elected

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VANDERHOOF, B.C. – British Columbia Conservatives are promising changes they say will bring more stability to the province’s struggling forest industry.

Leader John Rustad announced his plan for the sector a week before the official launch of the provincial election campaign, saying a Conservative government would do away with stumpage fees paid when timber is harvested and instead put a tax on the final products that are produced.

Rustad said Saturday that under a provincial Conservative government, a small fee may be charged upfront, but the bulk would come at the end of the process, depending on what type of product is created.

He also promised to review how wildfires are managed, as well as streamline the permit process and review what he calls the province’s “uncompetitive cost structure.”

“British Columbia is by far the highest cost producers of any jurisdiction in North America. We need to be able to drive down those costs, so that our forest sector can actually be able to do the reinvestment, to be able to create the jobs and make sure that they’re still there to be able to support our communities,” he said.

The governing New Democrats meanwhile, say eliminating stumpage fees would inflame the softwood lumber dispute with the United States and hurt forestry workers.

In a statement issued by the NDP, Andrew Mercier, the party’s candidate in Langley-Willowbrook, said Rustad failed to support the industry when he was in government under the former BC Liberals.

“Not only will Rustad’s old thinking and recycled ideas fail to deliver, his proposal to eliminate stumpage would inflame the softwood lumber dispute — punishing forestry workers and communities,” Mercier said, accusing Rustad of ignoring the complexity of the challenges facing the industry.

The softwood lumber dispute between the U.S. and Canada stretches back decades. In August, the U.S. Department of Commerce nearly doubled duties on softwood lumber.

International Trade Minister Mary Ng has said Canada has taken steps to launch two legal challenges under the Canada-United States-Mexico Agreement.

Rustad said a provincial Conservative government would push hard to get a deal with the United States over the ongoing dispute “whether it’s with the rest of Canada or by itself.”

He said his party’s proposed changes are in the name of bringing “stability” and “hope” to the industry that has seen multiple closures of mills in rural communities over the last several years.

Most recently, Canfor Corp. decided to shutter two northern British Columbia sawmills earlier this month, leaving hundreds of workers unemployed by the end of the year.

According to the United Steelworkers union, Canfor has closed 10 mills in the province since November 2011, including nine in northern B.C.

Jeff Bromley, chair of the United Steelworkers wood council, said Saturday the idea of changes in favour of taxing the final product has been floated in the past.

He said the finer details of the Conservative plan will be important, but that the system needs to be improved and “new ideas are certainly something I’d be willing to entertain.”

“Something needs to happen, or the industry is just going to bleed and wither away and be a shadow of its former self,” Bromley said.

“Politics aside, if (Rustad) can come up with a policy that enables my members to work, then I would be supportive of that. But then I’m supportive of any government that would come up with policies and fibre for our mills to run. Period.”

When Canfor announced its latest closures, Forests Minister Bruce Ralston said the sector was a “foundational part” of the province and the current NDP government would work to support both local jobs and wood manufacturing operations.

This report by The Canadian Press was first published Sept. 14, 2024

The Canadian Press. All rights reserved.



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Christian McCaffrey is placed on injured reserve for the 49ers and will miss at least 4 more games

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SANTA CLARA, Calif. (AP) — The San Francisco 49ers placed All-Pro running back Christian McCaffrey on injured reserve because of his lingering calf and Achilles tendon injuries.

The move made Saturday means McCaffrey will miss at least four more games after already sitting out the season opener. He is eligible to return for a Thursday night game in Seattle on Oct. 10.

McCaffrey got hurt early in training camp and missed four weeks of practice before returning to the field on a limited basis last week. He was a late scratch for the opener on Monday night against the Jets and now is sidelined again after experiencing pain following practice on Thursday.

McCaffrey led the NFL last season with 2,023 yards from scrimmage and was tied for the league lead with 21 touchdowns, winning AP Offensive Player of the Year.

The Niners made up for McCaffrey’s absence thanks to a strong performance from backup Jordan Mason, who had 28 carries for 147 yards and a touchdown in San Francisco’s 32-19 victory over the New York Jets. Mason is set to start again Sunday at Minnesota.

After missing 23 games because of injuries in his final two full seasons with Carolina, McCaffrey had been healthy the past two seasons.

He missed only one game combined in 2022-23 — a meaningless Week 18 game last season for San Francisco when he had a sore calf. His 798 combined touches from scrimmage in the regular season and playoffs were the third most for any player in a two-year span in the past 10 years.

Now San Francisco will likely rely heavily on Mason, a former undrafted free agent out of Georgia Tech who had 83 carries his first two seasons. He had at least 10 touches just twice before the season opener, when his 28 carries were the most by a 49ers player in a regular-season game since Frank Gore had 31 against Seattle on Oct. 30, 2011.

The Niners also have fourth-round rookie Isaac Guerendo and Patrick Taylor Jr. on the active roster. Guerendo played three offensive snaps with no touches in the opener. Taylor had 65 carries for Green Bay from 2021-23.

San Francisco also elevated safety Tracy Walker III from the practice squad for Sunday’s game against Minnesota.

___

AP NFL:

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Canada’s Newman, Arop secure third-place finishes at Diamond League track event

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BRUSSELS – Canada walked away with some hardware at the Diamond League track and field competition Saturday.

Alysha Newman finished third in women’s pole vault, while Marco Arop did the same in the men’s 800-metre race.

Newman won a bronze medal in her event at the recent Paris Olympics. Arop grabbed silver at the same distance in France last month.

Australia’s Nina Kennedy, who captured gold at the Summer Games, again finished atop the podium. Sandi Morris of the United States was second.

Newman set a national record when she secured Canada’s first-ever pole vault medal with a bronze at the Olympics with a height of 4.85 metres. The 30-year-old from London, Ont., cleared 4.80 metres in her second attempt Saturday, but was unable conquer 4.88 metres on three attempts.

Arop, a 25-year-old from Edmonton, finished the men’s 800 metres with a time of one minute 43.25 seconds. Olympic gold medallist Emmanuel Wanyonyi of Kenya was first with a time of 1:42.70.

Djamel Sedjati, edged out by Arop for silver in Paris last month, was second 1:42.87

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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