Crown CEOS’ pay went up despite rollback

3.5% reduction to show ‘leadership’ in deficit not reflected in take-home pay

Despite supposedly taking a 3.5-per-cent wage cut to show leadership and help combat the provincial deficit, CEOS at Saskatchewan Crown corporations took home more.

According to the premier’s office, CEOS at the province’s Crown corporations “did participate in a 3.5 per cent salary roll back from May 1, 2017, to April 30, 2018.”

But according to the Crown Investment Corp. payee disclosure report, some CEOS saw their total remuneration go up, not down, over the period when they were supposedly taking a 3.5-per-cent wage reduction.

A 3.5-per-cent wage rollback was accepted by government MLAS, deputy ministers, other political staffers and Crown CEOS as a way to “show leadership” as the province was asking other publicsector employees to take the same cut in order to help Saskatchewan climb out of a deficit.

Mike Marsh, CEO of Saskpower, saw his remuneration jump 16 per cent, from $481,169 to $561,035.

SGI CEO Andrew Cartmell’s payments went up 26 per cent, from $404,004 to $509,435.

Kenneth From, CEO of Saskenergy, was hired at the start of 2017, so he worked for only three months of the 2016-17 fiscal year. His remuneration pro-rated over the entire fiscal year is roughly $311,256. The following year, he earned $339,999, which is nine per cent higher.

Sasktel CEO Ron Styles retired three months into the 2017-18 fiscal year, and his total remuneration was $298,613 over that period. Across 12 months, that equals roughly $1,194,452. It is likely that figure, which would see Styles earning 300 per cent more than the year prior, would be artificially higher because it includes at least a portion of his retirement earnings.

Asked why executive pay continued to rise at Crown corporations when there was a directive for officials to take a 3.5-per-cent wage cut, the province pointed to a number of factors, including overtime, salary holdback payments, vacation payouts, flexible spending account benefits and severance pay. The figures reported can include dollars attached to such items, but does not include travel expenses.

Another reason provided was because of the change in the fiscal year. Crown corporations used to see their fiscal year end in December, but two years ago it was moved to March so that it would line up with the province’s fiscal year.

“This created an anomaly, where the 2016-17 payee disclosure report did not include holdback payments made to some Crown employees for the 2016-17 fiscal year. Instead, those 2016-17 holdback payments were reported as part of the 2017-18 remuneration, inflating totals for the 2017-18 fiscal year,” read the statement, which went on to say the increases in salary are “apparent, not real, and would not reflect an annual salary increase.” The province says salary holdbacks are part of a performance pay structure allowing for a portion of income to be received only if certain goals are met.