Dozens of big companies headed by top-paid CEOs collected COVID-19 government benefits: report
CBC
Canada's 100 top-paid CEOs had a stellar year in 2020, despite the onset of a pandemic which led to layoffs and financial woes for many workers, according to a new report.
The Canadian Centre for Policy Alternatives (CCPA) report examined the 100 highest-paid CEOs at publicly traded Canadian-based companies for 2020. It found that their average annual compensation totalled $10.9 million — $95,000 more than their average pay in prepandemic 2019.
"While [2020] was really a pretty bad year for most Canadians, particularly lower paid working Canadians, many of whom lost their jobs … it wasn't at all a bad year for CEOs," said David Macdonald, report author and senior economist with the CCPA, a think-tank that studies economic inequity.
MacDonald combined each CEO's base salary plus compensation, such as cash bonuses and stock options, to tally up their income totals.
According to his report, more than one third of the companies headed by those CEOs received the COVID-19 Canada Emergency Wage Subsidy (CEWS) either directly or indirectly through their subsidiaries or franchisees.
MacDonald suggests that added subsidy helped some CEOs achieve revenue targets for lucrative bonuses, even though their companies may have suffered financially due to the pandemic.
"Many of these companies probably didn't need the [CEWS], but if there's federal money available, they were going to apply and they were going to take it," he said. "That was not what this program was meant for."
The federal government introduced CEWS in March 2020 to help companies minimize job losses as COVID-19 restrictions and lockdowns were imposed. To qualify, companies simply had to show a drop in revenue during the pandemic.
According to the federal CEWS website, as of Dec. 19, Ottawa has paid out $99.13 billion under the program.
CBC News reached out for comment to several companies which, according to the CCPA report, received the CEWS and were headed by one of those 100 CEOs.
According to the report, David Klein, CEO of the cannabis company Canopy Growth, scored the top spot, earning just over $45 million in total compensation.
MJBizDaily, a cannabis industry news publication, estimates Canopy Growth may have received $50 million total in CEWS funding.
In an email to CBC News, Canopy Growth — which is based in Smiths Falls, Ont. — confirmed it did receive the CEWS, but did not specify the amount.
Canopy Growth said it met the requirements for the subsidy which "allowed the company to offset the financial impact of the COVID-19 pandemic, including strategically hiring approximately 1,000 team members."
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