BC Ferries unveiled long-awaited reforms to its executive bonus system Wednesday

BC Ferries unveiled long-awaited reforms to its executive bonus system Wednesday

BC Ferries bosses swap bonuses for higher pay

New system of salary holdbacks for executives called 'bait and switch'

It won’t be called a bonus any longer, but BC Ferries executives will take home almost as much money as they do now after a switch to a salary holdback plan.

After months of promises by Transportation Minister Todd Stone to fix the controversial bonuses, the corporation announced Wednesday they’ve been eliminated retroactive to April 1, 2013.

In their place is a new salary holdback system that raises the base salary of executives by the four-year average of their recent bonuses.

Part of the new higher base salary will be held back, starting next April, and be paid out only if performance targets are met.

BC Ferries’ board chair Donald Hayes said the plan is in line with the province’s guidelines for executive compensation at Crown corporations.

But critics aren’t impressed.

“It’s bait and switch,” NDP leader Adrian Dix said. “This is a bonus scheme by another name. I don’t know why the premier thinks people will be fooled by this.”

BC Ferries executive vice-president and chief financial officer Robert Clarke received a $133,000 bonus this year on top of his base salary of $297,300, for total pay before pension contributions of $431,000.

Under the new system, his maximum salary will rise to $403,000, assuming he meets targets and isn’t subject to any holdback.0

CEO Michael Corrigan’s base salary rises from $364,000 to $425,125 and he is forecast to get the identical overall compensation of $563,000 in 2014 after pension contributions and other benefits are added.

Corrigan’s pay is capped at that level, which is 60 per cent below former CEO David Hahn, who had been dubbed the “million dollar man” for the bonuses that took his overall compensation into seven figures.

The corporation said a holdback plan for other managers wasn’t feasible so their base salaries will be raised by the four-year average of bonuses, which will no longer be paid.

Hayes also announced a two-year pay freeze for all executives and managers until 2016.

“A two-year pay freeze is meaningless when you’re overpaying so dramatically,” said Canadian Taxpayers Federation B.C. director Jordan Bateman, who pointed to the much lower salary of $165,943 paid to the CEO of Washington State’s ferry system.

“I’d call this baby steps but that might be insulting to babies.”

He said nothing has been done to address the real problem with bonuses or holdbacks – that they’re meaningless if the targets are too easy to achieve.

The most recent bonuses were paid out for 2012 performance when the corporation recorded a surplus, but critics maintain that shouldn’t have counted because the government injected $21.5 million in extra subsidies.

Bateman said no executive should get a bonus or a holdback repaid in years where BC Ferries raises fares or takes more money in provincial subsidies.

“That should be a deal breaker on bonuses and holdbacks.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The property on which a residential school (pictured) that was torn down years ago in Lower Post is to be the location of a cultural centre. (Indian Residential School History and Dialogue Centre photo)
Lower Post residential school building to be demolished, replaced with cultural centre

Project to be funded by federal and provincial governments, Daylu Dena Council

The Cancer Care Unit at Prince Rupert Regional Hospital, April 14, will benefit from a $100,000 donation from Prince Rupert Port Authority towards renovations. (Photo: K-J Millar/The Northern View)
Prince Rupert Port Authority donates $100,000 to hospital renovations

Cancer Care Unit at PRRH to undergo upgradesat PRRH to undergo upgrades

Teresa Van sorts bottles at the April 10 Rainmakers Interact Club bottle drive to earn funds for six Seabin garbage collection units for harbours and waterfronts in the local region. (Photo: K-J Millar/The Northern View)
Bottle drive successful with more collected than can be sorted in one day

Rainmakers Interact Club supports local community with funds toward ocean garbage collection units

Flights are to resume to Prince Rupert and Sandspit airports under an Air Canada and federal government $5.9 billion agreement that was reached on April 12. A plane is seen through the window on the tarmac of Vancouver International Airport as the waiting room is empty Tuesday, June 9, 2020. (THE CANADIAN PRESS/Jonathan Hayward)
$5.879 billion agreement between Air Canada and Fed’s will assist YPR in re-opening

Prince Rupert Regional Airport to reopen flights by June 1st, if not earlier

BC Housing townhouses on Kootenay Ave. were demolished during March to make way for new affordable residential units by Prince Rupert Indigenous Housing Society. (Photo: K-J Millar/The Northern View)
Despite a recent reduction in units project will still be able to house many

Prince Rupert Indigenous Housing Society says 60 units is still the plan

A woman wears a protective face covering to help prevent the spread of COVID-19 as he walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

Norm Scott, president of Royal Canadian Legion Branch # 91, is disappointed the Legion does not qualify for COVID financial assistance from the provincial government. (Black Press Media file photo)
B.C.’s pandemic aid package passing Legion branches by

Federal non-profit status stymies provincial assistance eligibility

Latest modelling by public health shows cases generated by COVID-19 infections into places where it can spread quickly. (B.C. Centre for Disease Control)
Industrial sites, pubs, restaurants driving COVID-19 spread in B.C.

Infection risk higher in offices, retail, warehouses, farms

Vancouver Canucks forward J.T. Miller said it would be “very challenging and not very safe” for him and his teammates to play as scheduled on Friday. THE CANADIAN PRESS/Darryl Dyck
Canucks’ return to ice postponed again after players voice COVID health concerns

Friday’s game against the Edmonton Oilers was called off after the team met virtually with the NHLPA

B.C. Attorney General David Eby, Minister Responsible for Housing. THE CANADIAN PRESS/Chad Hipolito
B.C. announces $2B for affordable, middle-income family home projects

New HousingHub financing funds will encourage developers, groups – with low-interest loans – to build affordable homes

Video captured Wednesday, April 14, shows a white BMW driving along the seawall between Vancouver’s Plaza of Nations and Science World. (Krimda Toravantian/Screen grab)
VIDEO: Motorist takes a drive along Vancouver seawall

Pedestrians near False Creek expressed disbelief after seeing the car join them on the walking path

Parliament Hill is shown in Ottawa on Wednesday, March 11, 2020. The Trudeau government has agreed with the Senate that Canadians suffering solely from grievous and irremediable mental illnesses should be entitled to receive medical assistance in dying — but not for another two years. (THE CANADIAN PRESS/Sean Kilpatrick photo)
Self-advocates ‘sad, scared, angry’ over revisions to assisted-death legislation

Bill C-7 was expanded to include access to medically assisted death for non-terminal conditions

Most Read