Canada’s 100 highest paid CEOs broke every previous compensation record in 2021 due to inflation, according to a report by the Canadian Centre for Policy Alternatives (CCPA). .“If you measure this massive pay disparity in time, less than an hour after the first working day of the year begins, Canada’s highest-paid CEOs will have already made $58,800, or what it will take the average worker the entire year to make,” said CCPA senior economist David Macdonald in a Tuesday press release..“That’s by 9:43 am on Jan. 3, 2023, to be precise.”.Macdonald said people could call CEO pay “the breakfast of champions.”.The report said 100 CEOs were paid an average of $14.3 million in 2021, smashing the previous record of $11.8 million in 2018 and setting a new all-time high in its series. It said they make 243 times more than the average worker in Canada, up from the previous high of 227 times in 2018. .While inflation hurts workers, the report said it is great for corporate profits hitting historic highs. When profits go up, it said executive bonuses increase. .Variable compensation bonuses made up 83% of the best-paid CEOs total compensation, up from 69% in 2008. People expect inflation to be terrible for every one, but Macdonald said for CEOs it is “the gift that keeps on giving.”.Inflation in Canada was at 6.8% on a year-over-year basis in November, down from a 6.9% gain in October, according to December 21 data from Statistics Canada. .READ MORE: Inflation in Canada falls to 6.8% in November.Excluding food and energy, prices rose 5.4% on a yearly basis in November, following a 5.3% gain in October. Slower price growth for gas and furniture was offset by higher costs for mortgage interest and rent..Food prices went up by 11.4% in November, compared to this time last year. Food inflation remained broad-based, with grocery prices rising at a faster rate than every other item every month for the past year. .The report proposes four solutions for governments to address income inequality through taxation measures. The measures are limiting corporate deductibility of compensation greater than $1 million, closing the capital gains inclusion rate loophole, implementing higher top marginal tax brackets, and introducing a wealth tax. .Macdonald said soaring CEO pay is going unchecked. .“Taxation can be the check we need,” he said.
Canada’s 100 highest paid CEOs broke every previous compensation record in 2021 due to inflation, according to a report by the Canadian Centre for Policy Alternatives (CCPA). .“If you measure this massive pay disparity in time, less than an hour after the first working day of the year begins, Canada’s highest-paid CEOs will have already made $58,800, or what it will take the average worker the entire year to make,” said CCPA senior economist David Macdonald in a Tuesday press release..“That’s by 9:43 am on Jan. 3, 2023, to be precise.”.Macdonald said people could call CEO pay “the breakfast of champions.”.The report said 100 CEOs were paid an average of $14.3 million in 2021, smashing the previous record of $11.8 million in 2018 and setting a new all-time high in its series. It said they make 243 times more than the average worker in Canada, up from the previous high of 227 times in 2018. .While inflation hurts workers, the report said it is great for corporate profits hitting historic highs. When profits go up, it said executive bonuses increase. .Variable compensation bonuses made up 83% of the best-paid CEOs total compensation, up from 69% in 2008. People expect inflation to be terrible for every one, but Macdonald said for CEOs it is “the gift that keeps on giving.”.Inflation in Canada was at 6.8% on a year-over-year basis in November, down from a 6.9% gain in October, according to December 21 data from Statistics Canada. .READ MORE: Inflation in Canada falls to 6.8% in November.Excluding food and energy, prices rose 5.4% on a yearly basis in November, following a 5.3% gain in October. Slower price growth for gas and furniture was offset by higher costs for mortgage interest and rent..Food prices went up by 11.4% in November, compared to this time last year. Food inflation remained broad-based, with grocery prices rising at a faster rate than every other item every month for the past year. .The report proposes four solutions for governments to address income inequality through taxation measures. The measures are limiting corporate deductibility of compensation greater than $1 million, closing the capital gains inclusion rate loophole, implementing higher top marginal tax brackets, and introducing a wealth tax. .Macdonald said soaring CEO pay is going unchecked. .“Taxation can be the check we need,” he said.
