Alberta axes club perks for its executives

EDMONTON • CEOs at Alberta’s agencies, boards and commissions will soon have to start paying for their own golf club memberships.

The government hopes to save $ 16 million by cutting salaries, abolishing bonuses and removing perks for top executives at 23 agencies, including the Workers Compensation Board, the Alberta Utilities Commission and the gaming and liquor commission.

Severance pay will be capped at 12 months and other benefits, like pension plans and health benefits, will be brought in line with the existing model in the Alberta government.

The government used a third- party company to review a database of more than 200 public- sector salaries across Canada and create a framework for the province.

Under t he new salary ranges, most of the CEOs will see a cut in pay.

For example, Guy Kerr, t he CEO of t he Workers Compensation Board, took home a base salary of $ 475,000 in 2015, but disclosed $ 896,000 in total compensation t hanks to bonus pay and benefits. The new base salary for the WCB boss will be $396,720.

The perks, which i ncluded health and golf club memberships, amounted to about $ 30,000 for all the CEOs and will be banned.

A two- year notice period is required for CEOs under contract so, although the changes come into effect on March 16, many of them won’t feel it in their bank account until much later.

Nine CEOs have contracts expiring before the two-year period ends and will be subject to the new salary rules during a renegotiation.

Five agencies won’t fall under the new framework and will be required to provide compensation plans instead.