Canada’s Top CEOs: Inside the World of Skyrocketing Pay in 2023

Canada’s Top CEOs Inside the World of Skyrocketing Pay in 2023

Canada’s Top CEOs: Inside the World of Skyrocketing Pay in 2023

Have you ever wondered how much Canada’s top CEOs earn compared to the average worker? In 2023, the numbers are staggering. The country’s 100 highest-paid CEOs pocketed an average of $13.2 million —a figure 210 times the average worker’s annual wage. By January 2, at just 10:54 a.m., these executives had already earned what it takes a Canadian worker an entire year to make. This eye-opening disparity highlights a growing gap between corporate elites and the workforce.

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The allure of sky-high CEO pay often rests on myths. We’re told these individuals are exceptional talents, plucked from a mythical pool of irreplaceable leaders. The truth? Most top CEOs are homegrown, having spent an average of 21 years working within their companies. These aren’t gods descending from the heavens—they’re seasoned insiders who know their firms inside and out. Yet, despite this reality, compensation packages are justified as necessary to attract and retain "indispensable" talent.

What’s fueling these astronomical paychecks? Bonuses. While salaries and pensions have remained relatively steady, averaging $1.3 million and $345,000 respectively, bonuses now account for the lion’s share. A whopping $10.7 million, on average, came from "variable compensation" in 2023. The idea is that these bonuses reward performance, but evidence suggests otherwise. Even during downturns, when profits falter, bonuses persist, propped up by shifting goalposts.

The gender disparity in this elite group is glaring. Out of 100, only three women made the list, compared to a combined total of nine CEOs named Scott or Michael. The old boys' club is alive and well in Canadian boardrooms, where women consistently remain underrepresented.

Despite record CEO pay, there’s been some progress in leveling the playing field. Recent federal policies, such as capping the stock option deduction, have chipped away at tax loopholes that disproportionately benefit top earners. Still, the average CEO earns in hours what most Canadians earn in a year—a stark reminder of the deep inequalities entrenched in the corporate world.

In a world where workers are only now regaining ground lost to inflation, these figures offer much to ponder about fairness, value, and the future of work in Canada.

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