Canadian CEOs See Record-Breaking Pay Hikes as Markets Soar

Strategic Insights -

Canadian CEOs at the country's 100 largest public companies received a record-breaking 19.6 per cent pay hike in 2024, bringing their median total compensation to $10,303,190. This average pay increase was largely driven by the strong performance of the S&P/TSX Composite Index, which rose by around 20 per cent in 2024. The sharp increase in executive compensation also contrasts with the relatively modest 3.4-per-cent year-over-year increase in average hourly wages for Canadians.

Key Takeaways:

  • The median total compensation for CEOs at Canada's 100 largest public companies reached $10,303,190 in 2024, up 19.6 per cent from 2023.
  • The average CEO in the top 100 received a short-term incentive payment that was 55 per cent above their target.
  • The strong performance of the S&P/TSX Composite Index was the primary driver of the increase, rising by around 20 per cent in 2024.
  • The use of share-based awards has grown by 277 per cent since 2011, contributing significantly to the rise in executive compensation.
  • The average ratio of CEO-to-workers salary in Canada has risen from 50 in the 1980s to nearly 250 in 2024.
  • The Canadian system of setting performance targets based on relative company performance, rather than absolute stock prices, can limit the downside for CEOs in bear markets but also allows for larger payments when markets rise.
  • Women were underrepresented among the highest-paid CEOs, with only one, Canadian National Railway CEO Tracy Robinson, placing in the top 50 for pay.

Statistics:

  • Median total compensation for CEOs at Canada's 100 largest public companies: $10,303,190
  • Average pay increase: 19.6 per cent
  • S&P/TSX Composite Index increase: around 20 per cent
  • Average hourly wages increase for Canadians: 3.4 per cent
  • Ratio of CEO-to-workers salary in Canada: nearly 250
  • Growth in share-based awards: 277 per cent since 2011
  • Median options-based awards to CEOs in the top 100: 31 per cent lower in 2024 than in 2011

Sources:

  • A report by Global Governance Advisors in partnership with Globe & Mail
  • Data from Laulima Consulting
  • Statistics Canada
  • Report by Canadian Centre for Policy Alternatives
  • Interview with Paul Gryglewicz, managing partner at Global Governance Advisors
  • Data from Hugessen Consulting