CBC/Radio-Canada to scrap much-maligned ‘performance pay’ for managers
CBC/Radio-Canada Announces End to Performance Pay for Managers
After facing backlash for awarding “performance pay” to managers while considering layoffs, CBC/Radio-Canada’s board of directors has decided to discontinue the practice following a third-party review. The corporation revealed this decision on Wednesday, stating that non-unionized employees, such as executives and managers, were previously eligible for bonuses based on meeting or exceeding specific metrics like revenue targets, audience size, and digital reach.
This practice, commonly used by other federal Crown corporations and government departments, drew criticism from Canadians, government officials, and opposition MPs when CBC/Radio-Canada, under the leadership of then-CEO Catherine Tait, planned to cut around 800 jobs due to financial constraints. Documents obtained by The Canadian Press showed that $18.4 million in performance pay was distributed to 1,194 employees for the 2023-24 fiscal year, sparking outrage from the federal Conservatives.
Ultimately, many of the planned layoffs were canceled after the federal government provided additional funding to address budget shortfalls exacerbated by inflation. Tait, who at the time was hesitant to eliminate performance pay, argued that the funds were part of a manager’s compensation package rather than traditional bonuses seen in the private sector. Later on, veteran Quebec TV executive Marie-Philippe Bouchard took over as CEO.
In response to the controversy, CBC/Radio-Canada announced that it would shift its focus away from short-term goals like revenue and prioritize long-term public service objectives, such as enhancing its value to all citizens and bolstering Canadian culture. While the performance pay policy is being scrapped, management and executive compensation will remain stable by adjusting salaries to compensate for the removal of individual bonuses.
An external consultancy firm, hired to assess CBC/Radio-Canada’s compensation structure, released a report highlighting that executive and management remuneration is generally in line with or lower than industry standards. The firm emphasized the importance of maintaining competitive salaries to retain and attract top talent necessary for fulfilling the organization’s national mandate.
Despite facing stagnant parliamentary appropriations over the years, CBC/Radio-Canada has experienced significant changes in the media landscape, including the rise of streaming services and increased competition from foreign-owned companies. Prime Minister Mark Carney has pledged to increase funding to align with levels seen in other developed countries, with the G7 average for public media funding standing at $62.20 per capita compared to Ottawa’s current allocation of $33.66 per capita for CBC/Radio-Canada.
During the recent election, Conservative Leader Pierre Poilievre proposed defunding CBC while preserving French-language Radio-Canada, suggesting that other broadcasters and media outlets could fill the void in news and entertainment without taxpayer support. As CBC/Radio-Canada navigates these challenges, the organization remains committed to delivering high-quality content that reflects the diverse voices of Canadians.
