McGuinty Considers Capping CEO Salaries
Posted April 7, 2010 7:35 am.
This article is more than 5 years old.
Some high-income earners across Ontario may have their salaries frozen as the provincial government struggles to reduce the record amount of red ink on its books.
After delivering its budget last month, the Liberal government announced an immediate freeze on public sector non-unionized workers and managers. The province will also limit compensation packages for unionized employees for two years after their current contracts expire.
Now, McGuinty is suggesting the same measures could soon apply to the CEOs of all government agencies.
The province has already hinted it may consider implementing new measures for hospital CEOs in which compensation would reflect the quality of services their facilities provide. The Sunshine list, released last month, included 14 CEOs who made more than $500,000.
Under the compensation plan the province is reportedly considering, CEOs’ pay would be based on things like cutting ER wait times and reducing hospital infection rates.
In regards to other public sector CEOs, McGuinty said anyone serving the public in an “executive capacity” must take the impact of the recession into account.
Municipalities, police and fire agencies have also been asked to freeze salaries. MPPs have also had their salaries frozen for three years.
The province posted a record $21.3 billion deficit. The Liberals hope to save up to $750 million by freezing salaries.
