The gap in pay between Chief Executive Officers (CEOs) and the average Canadian worker has reached a new level of disparity.
A new study by the Canadian Centre for Policy Alternatives (CCPA) has found that Canada’s 100 highest paid CEOs made 227 times more than the average worker in 2018, up from the previous year when CEOs made 197 times more than the average worker.
The report shows that CEOs with the richest compensation among companies included in the S&P/TSX Composite Index made, on average, $11.8 million in 2018. Individual income for Canadian workers in 2018 came in at an average of $52,061.
The report also found that only four women are among Canada’s 100 top-paid CEOs. In a news release, CCPA called for the federal government to take action to deal with "runaway C-suite compensation." He said the issue could be addressed through a review of tax loopholes, with a focus on the preferential treatment of stock options and capital gains.
Ottawa has vowed to change the way stock options are taxed, but its plan hit a speed bump in December when Finance Minister Bill Morneau delayed implementation of the new regime to allow more time to assess the types of start-ups and other emerging companies that will be spared from the tougher rules.
