Money matters up for debate
We got a firsthand view of grassroots populism on the subject of executive compensation, wages and the public sector last week. It was interesting, and not entirely flattering.
Example 1: Bombardier. Angry Quebecers were in full voice on learning that the aircraft and train maker planned to hand out hefty bonuses to six members of its senior executive team. The planned bonuses were huge — up to 50 per cent of annual income — in a year where the company has spun its wheels and cut jobs.
This not long after a bailout from the Quebec government and an additional $372 million in federal assistance. The company’s acceptance of public money makes its executive generosity public business, say many. Many lamented about the public money — it’s our taxes and our money. Eventually, Bombardier announced it was delaying payment and tying it to clear performance commitments.
All this makes for some interesting questions. Does that “we have to be competitive” justification make the bonuses OK? Does this mean any corporation that accepts government largesse is public business? Last week Ottawa and Queen’s Park announced a $200 million investment in Ford’s Canadian operations. Will Ford listen to public concerns about executive compensation since it is now benefitting from tax support (hardly the first time for Canadian automakers)? Food for thought for the next time this comes up.
Example 2: Ontario’s Sunshine List. Now 21 years old, the Ontario Public Sector Disclosure Act requires all salaries $100,000 and up paid entirely by taxpayers to be made public. Friday was the day. Public reaction to the disclosure is always interesting. This year it seems more vitriolic than in the past, perhaps in keeping with the prevailing climate of hostile polarization.
Can you believe that teacher, or that principal, made well over $100,000? How about that police officer or firefighter? Or, I know that guy and there’s no way he’s worth $120,000 a year. And that hospital CEO? Come on, who can possibly be worth that much?
Never mind the justification. Never mind that the police officer, firefighter or nurse may have worked hundreds of hours of overtime to legitimately earn that money. Never mind that the hospital board strongly feels it needs to pay the CEO that much to remain competitive in an international market. Never mind the context, focus on that dollar figure, and while we’re at it let’s villainize the public sector. Public feeding frenzies are rarely pretty, and this was no exception.
It’s hard to argue that the Sunshine List isn’t justified for reasons of transparency and accountability. But it shouldn’t be a licence for public vilification and bald-faced envy, either. It seems, sometimes, that’s the direction we’re heading.