Another Year, Another Misleading Report On CEO Pay In Canada

[Anonymous]

This time it was gasp....the Centre For Policy Alternatives that lied. This is according to payscale.

A Chief Executive Officer (CEO) earns an average salary of C$140,847 per year. The highest paying skills associated with this job are Business Strategy, Budget Management, Team Leadership, Sales, and Sales Management.

http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_%28CEO%29/Salary">http://www.payscale.com/research/CA/Job ... EO)/Salary">http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_(CEO)/Salary

Every year, an organization releases a report that compares the average wages and salaries of Canadian workers to the total compensation of Canada's top 100 CEOs. The report claims CEO pay is excessive and that governments should step in by raising taxes. As we previously pointed out, the analysis is deeply flawed.



The report finds that Canada's top 100 CEOs earned an average $9.0 million in total compensation in 2014 or 184 times the average worker's wages and salaries.



This comparison breaks a basic rule of statistics by comparing apples to oranges, using a definition of CEO pay that is much more wide-ranging than that used for average workers.



Specifically, the compensation figure for CEOs includes not just base salaries but all forms of compensation such as bonuses, company shares, stock options, "perks" and pensions. Meanwhile, the pay of average workers only includes their salaries—not pensions and other benefits. So right from the start, the report exaggerates the pay gap between workers and senior management.



Another glaring issue with the comparison is that the top 100 CEOs are not a representative sample of Canadian corporate leadership. These are not your average corporate leaders; they are the top people—the superstars with unique talents and qualities in high demand. Presenting their compensation as being typical of CEOs is like saying Sidney Crosby's salary ($12 million) is representative of the average NHL salary ($2.6 million).



Ideally, we should compare the average Canadian CEO's total compensation to the average worker's total compensation. Unfortunately, there is no such readily available data. But data from Statistics Canada's National Household Survey, though limited, allows for a more apples to apples comparison.



The data cover a narrow measure of compensation: wages and salaries. And the data are for a broad occupational group: senior management (which includes more than just CEOs—for instance, senior government managers and officials fall into this group).



In 2010, the latest year of available data, the wages and salaries of the average senior manager was $142,434. That's 3.4 times the wages and salaries of the average worker ($42,445)—a far cry from the "184 times" figure cited above.



Digging a little deeper into the data reveals the average senior manager is not even the highest paid occupation (based on wages and salaries). The chart below displays other occupations that, on average, make more than the average senior manager.

https://www.fraserinstitute.org/sites/default/files/authors/CEO%20pay%20chart.png">

In 2010, judges were the highest paid, with average wages and salaries of $199,756 or 40.2 per cent more than the average senior manager ($142,434). The average petroleum engineer ($154,249) also made more than the average senior manager, as did those working as securities agents and investment dealers and brokers ($143,436).



The point is not that senior managers, and by extension CEOs, deserve more or less pay relative to the average worker. The compensation of senior managers is a matter for owners to fret about, not governments. But a meaningful discussion about CEO pay should not be based on faulty and misleading statistics.

http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada">http://www.fraserinstitute.org/blogs/a- ... -in-canada">http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada

[RW]

Oh like the fucking Fraser Institute is any authors on decent research.  They have NEVER put out anything but twisted bullshit.



Read the fucking method in the CCPA paper Shen rather than have this shitty "think" tank hand you an opinion.



Fucking Fraser Institute.  Jesus Christ.

[Anonymous]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

[Anonymous]

This time it was gasp....the Centre For Policy Alternatives that lied. This is according to payscale.

A Chief Executive Officer (CEO) earns an average salary of C$140,847 per year. The highest paying skills associated with this job are Business Strategy, Budget Management, Team Leadership, Sales, and Sales Management.

http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_%28CEO%29/Salary">http://www.payscale.com/research/CA/Job ... EO)/Salary">http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_(CEO)/Salary

Every year, an organization releases a report that compares the average wages and salaries of Canadian workers to the total compensation of Canada's top 100 CEOs. The report claims CEO pay is excessive and that governments should step in by raising taxes. As we previously pointed out, the analysis is deeply flawed.



The report finds that Canada's top 100 CEOs earned an average $9.0 million in total compensation in 2014 or 184 times the average worker's wages and salaries.



This comparison breaks a basic rule of statistics by comparing apples to oranges, using a definition of CEO pay that is much more wide-ranging than that used for average workers.



Specifically, the compensation figure for CEOs includes not just base salaries but all forms of compensation such as bonuses, company shares, stock options, "perks" and pensions. Meanwhile, the pay of average workers only includes their salaries—not pensions and other benefits. So right from the start, the report exaggerates the pay gap between workers and senior management.



Another glaring issue with the comparison is that the top 100 CEOs are not a representative sample of Canadian corporate leadership. These are not your average corporate leaders; they are the top people—the superstars with unique talents and qualities in high demand. Presenting their compensation as being typical of CEOs is like saying Sidney Crosby's salary ($12 million) is representative of the average NHL salary ($2.6 million).



Ideally, we should compare the average Canadian CEO's total compensation to the average worker's total compensation. Unfortunately, there is no such readily available data. But data from Statistics Canada's National Household Survey, though limited, allows for a more apples to apples comparison.



The data cover a narrow measure of compensation: wages and salaries. And the data are for a broad occupational group: senior management (which includes more than just CEOs—for instance, senior government managers and officials fall into this group).



In 2010, the latest year of available data, the wages and salaries of the average senior manager was $142,434. That's 3.4 times the wages and salaries of the average worker ($42,445)—a far cry from the "184 times" figure cited above.



Digging a little deeper into the data reveals the average senior manager is not even the highest paid occupation (based on wages and salaries). The chart below displays other occupations that, on average, make more than the average senior manager.

https://www.fraserinstitute.org/sites/default/files/authors/CEO%20pay%20chart.png">

In 2010, judges were the highest paid, with average wages and salaries of $199,756 or 40.2 per cent more than the average senior manager ($142,434). The average petroleum engineer ($154,249) also made more than the average senior manager, as did those working as securities agents and investment dealers and brokers ($143,436).



The point is not that senior managers, and by extension CEOs, deserve more or less pay relative to the average worker. The compensation of senior managers is a matter for owners to fret about, not governments. But a meaningful discussion about CEO pay should not be based on faulty and misleading statistics.

http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada">http://www.fraserinstitute.org/blogs/a- ... -in-canada">http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada

Another misleading report designed to shock. I would expect nothing else from policyalternatives.



The average pay for a Chief Executive Officer (CEO) in Toronto, Ontario is C$152,860 per year.

[RW]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

Beats reeking of shitty researching.

[RW]

This time it was gasp....the Centre For Policy Alternatives that lied. This is according to payscale.

A Chief Executive Officer (CEO) earns an average salary of C$140,847 per year. The highest paying skills associated with this job are Business Strategy, Budget Management, Team Leadership, Sales, and Sales Management.

http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_%28CEO%29/Salary">http://www.payscale.com/research/CA/Job ... EO)/Salary">http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_(CEO)/Salary

Every year, an organization releases a report that compares the average wages and salaries of Canadian workers to the total compensation of Canada's top 100 CEOs. The report claims CEO pay is excessive and that governments should step in by raising taxes. As we previously pointed out, the analysis is deeply flawed.



The report finds that Canada's top 100 CEOs earned an average $9.0 million in total compensation in 2014 or 184 times the average worker's wages and salaries.



This comparison breaks a basic rule of statistics by comparing apples to oranges, using a definition of CEO pay that is much more wide-ranging than that used for average workers.



Specifically, the compensation figure for CEOs includes not just base salaries but all forms of compensation such as bonuses, company shares, stock options, "perks" and pensions. Meanwhile, the pay of average workers only includes their salaries—not pensions and other benefits. So right from the start, the report exaggerates the pay gap between workers and senior management.



Another glaring issue with the comparison is that the top 100 CEOs are not a representative sample of Canadian corporate leadership. These are not your average corporate leaders; they are the top people—the superstars with unique talents and qualities in high demand. Presenting their compensation as being typical of CEOs is like saying Sidney Crosby's salary ($12 million) is representative of the average NHL salary ($2.6 million).



Ideally, we should compare the average Canadian CEO's total compensation to the average worker's total compensation. Unfortunately, there is no such readily available data. But data from Statistics Canada's National Household Survey, though limited, allows for a more apples to apples comparison.



The data cover a narrow measure of compensation: wages and salaries. And the data are for a broad occupational group: senior management (which includes more than just CEOs—for instance, senior government managers and officials fall into this group).



In 2010, the latest year of available data, the wages and salaries of the average senior manager was $142,434. That's 3.4 times the wages and salaries of the average worker ($42,445)—a far cry from the "184 times" figure cited above.



Digging a little deeper into the data reveals the average senior manager is not even the highest paid occupation (based on wages and salaries). The chart below displays other occupations that, on average, make more than the average senior manager.

https://www.fraserinstitute.org/sites/default/files/authors/CEO%20pay%20chart.png">

In 2010, judges were the highest paid, with average wages and salaries of $199,756 or 40.2 per cent more than the average senior manager ($142,434). The average petroleum engineer ($154,249) also made more than the average senior manager, as did those working as securities agents and investment dealers and brokers ($143,436).



The point is not that senior managers, and by extension CEOs, deserve more or less pay relative to the average worker. The compensation of senior managers is a matter for owners to fret about, not governments. But a meaningful discussion about CEO pay should not be based on faulty and misleading statistics.

http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada">http://www.fraserinstitute.org/blogs/a- ... -in-canada">http://www.fraserinstitute.org/blogs/a-misleading-analysis-of-ceo-pay-in-canada

Another misleading report designed to shock. I would expect nothing else from policyalternatives.



The average pay for a Chief Executive Officer (CEO) in Toronto, Ontario is C$152,860 per year.

Did you actually READ the report?

[RW]

The Payscale link doesn't work BTW.  Maybe if they stopped short cutting their IT employees, it wouldn't have a problem.

[Anonymous]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

Beats reeking of shitty researching.

Yes, that report hoping to shock about CEO pay from what was it, Canadian Centre for Policy Alternatives was not research at all..



It was politically motivated and encourages people to be jealous and covet..



I've seen these reports before and I'm very uncomfortable with all of them.

[RW]

I was referring to the toilet paper Shen quoted in the OP by the Failser Institute.



The issue isn't to make people jealous and covet but it is designed to politically influence.



I take it someone you know is in upper levels of management?  Maybe someone you're related to perhaps?

[Anonymous]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

Beats reeking of shitty researching.

Yes, that report hoping to shock about CEO pay from what was it, Canadian Centre for Policy Alternatives was not research at all..



It was politically motivated and encourages people to be jealous and covet..



I've seen these reports before and I'm very uncomfortable with all of them.

Fash, RW has as many hang ups with one particular think tank as she does wih the church, and therefore cannot be taken seriously. Fraser is not the only think tank to challenge CCPA's highly disingenuous reporting of executive compensation. There is a reason the CCPA has been audited three times by the Canada Revenue Agency under three previous federal governments.



That aside, let's look at the top person on CCPA's hit list, Blackberry CEO John Chen. His salary this year is roughly $341,000 Canadian, but his compensation is listed as $89 million CAN according to CCPA. What they don't tell you is that the year before his compensation was 96% lower. In fact in the previous year he earned less than his company's COO and chief legal officer.



Fully 95% of the compensation attributed to Mr. Chen in the CCPA study relates to an award of restricted stock units (RSUs) granted when he was appointed as Executive Chairman and CEO of BlackBerry in November 2013. These time-based RSUs vest during the second half of a five-year period, to align Mr. Chen with the long-term interests of BlackBerry shareholders. To date, none of the RSUs have vested, and he has not received the benefit of any of the shares attributed to him in the CCPA study.

[RW]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

Beats reeking of shitty researching.

Yes, that report hoping to shock about CEO pay from what was it, Canadian Centre for Policy Alternatives was not research at all..



It was politically motivated and encourages people to be jealous and covet..



I've seen these reports before and I'm very uncomfortable with all of them.

Fash, RW has as many hang ups with one particular think tank as she does wih the church, and therefore cannot be taken seriously. Fraser is not the only think tank to challenge CCPA's highly disingenuous reporting of executive compensation. There is a reason the CCPA has been audited three times by the Canada Revenue Agency under three previous federal governments.



That aside, let's look at the top person on CCPA's hit list, Blackberry CEO John Chen. His salary this year is roughly $341,000 Canadian, but his compensation is listed as $89 million CAN according to CCPA. What they don't tell you is that the year before his compensation was 96% lower. In fact in the previous year he earned less than his company's COO and chief legal officer.



Fully 95% of the compensation attributed to Mr. Chen in the CCPA study relates to an award of restricted stock units (RSUs) granted when he was appointed as Executive Chairman and CEO of BlackBerry in November 2013. These time-based RSUs vest during the second half of a five-year period, to align Mr. Chen with the long-term interests of BlackBerry shareholders. To date, none of the RSUs have vested, and he has not received the benefit of any of the shares attributed to him in the CCPA study.

Excuse me seoul, but where the hell do you get off dismissing my opinions and stating they can't be taken seriously?  I'm sorry but I am getting damn sick and tired of your shitty attitude towards me.  I adore Fashionista.  You defending her is offensive and rude as it says I am attacking her for one, and that she can't handle herself for another.  We are grown-ups having grown-up discussions, not children fighting.



You clearly have a problem with me, so here I am.  Start a thread or PM me and we'll have a chat about your problem is.  If you aren't willing to talk to me directly, STFU mmkay? I can't stand people following me around passive aggressive bullshit and I would hate to have to start calling you soon Jr.



Now, I actually used to work in that circle, including directly with CCPA and Fraser Institute research.  I understand what goes into this type of research, specifically CEO pay, as I used to call up CEOs directly to survey them on salary and other compensations and benefits back in the early 2000s.  Although I didn't work for the CCPA or the Fraser Institute directly, they are not the same quality of research by any stretch of an academic mind.  That's from my own personal experience and one that is echoed by many, many others.



I understand the spin associated with research studies as figures can say damn near anything.  The thing to look for is if the method is transparent, consistent and makes note of any abnormalities.  I haven't read this particular study, so I can't answer that.  Maybe you can shed further light on this since only your opinions should be taken seriously.  :001_rolleyes:

[Anonymous]

I know these type of surveys by the Policy Alternative organization are for politically motivated reasons, but it reeks of envy and coveting.

Beats reeking of shitty researching.

Yes, that report hoping to shock about CEO pay from what was it, Canadian Centre for Policy Alternatives was not research at all..



It was politically motivated and encourages people to be jealous and covet..



I've seen these reports before and I'm very uncomfortable with all of them.

Fash, RW has as many hang ups with one particular think tank as she does wih the church, and therefore cannot be taken seriously. Fraser is not the only think tank to challenge CCPA's highly disingenuous reporting of executive compensation. There is a reason the CCPA has been audited three times by the Canada Revenue Agency under three previous federal governments.



That aside, let's look at the top person on CCPA's hit list, Blackberry CEO John Chen. His salary this year is roughly $341,000 Canadian, but his compensation is listed as $89 million CAN according to CCPA. What they don't tell you is that the year before his compensation was 96% lower. In fact in the previous year he earned less than his company's COO and chief legal officer.



Fully 95% of the compensation attributed to Mr. Chen in the CCPA study relates to an award of restricted stock units (RSUs) granted when he was appointed as Executive Chairman and CEO of BlackBerry in November 2013. These time-based RSUs vest during the second half of a five-year period, to align Mr. Chen with the long-term interests of BlackBerry shareholders. To date, none of the RSUs have vested, and he has not received the benefit of any of the shares attributed to him in the CCPA study.

We all have biases Seoul....I do, you do and RW does as well.

 ac_smile

[RW]

Sure I do but what I don't have is patience for this assholey bullshit

[Anonymous]

Sure I do but what I don't have is patience for this assholey bullshit.

I'm sure Shen Li and Seoul feel the same way.

 ac_smile

[RW]

Sure I do but what I don't have is patience for this assholey bullshit.

I'm sure Shen Li and Seoul feel the same way.

 ac_smile

Shen just calls me out whereas seoul passive aggressively shit talks me to you instead.  Is that a way to deal with something?  I haven't said fuck all to the guy.  Shen, we have our fights (but I like em :)